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TMI Blog2008 (5) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent. [Order] - M/s. Omkar Fine Organics Private Limited has filed this appeal. In the impugned order, Commissioner (Appeals) sustained the demand of interest for belated reversal of irregularly availed credit but vacated the penalty of Rs. 10,682/- imposed in the order of the original authority. The appellant seeks to vacate the interest demanded. 2. The facts of the case are that during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore he vacated the penalty. 3. The appellants reiterate the grounds taken before the Commissioner (Appeals) and submit that demand of interest in terms of Section 11AB had to be necessarily preceded by a Show Cause Notice and order determining the duty due. In the instant case, no notice was issued. Immediately on the irregularity being brought to their notice, the excess availed credit was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the short payment of duty with delay. Therefore, in the instant case, interest was demanded in accordance with law. Interest was liable to be paid also in cases where the short payment was made good by the assessee on its own ascertainment. Therefore interest was payable by the assessee as ordered. 5. I have considered the rival submissions made by both sides. I find that owing to inadvertence th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of credit is usually visited with a penalty. Therefore, the interest for delay in paying the duty due/reversing the excess credit utilized is obviously in the nature of a civil liability for depriving the exchequer its right to enjoy revenue for the period of delay in paying the same to it. In the instant case, it is not disputed that the excess credit availed remains an entry in the proforma acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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