9911796707
TMI Blog2025 (1) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... SIONER OF CENTRAL EXCISE SERVICE TAX LARGE TAXPAYER UNIT, BANGALORE VERSUS M/S BILL FORGE PVT LTD, BANGALORE [ 2011 (4) TMI 969 - KARNATAKA HIGH COURT ], held that if the Cenvat credit is reversed before utilization of credit, it amounts to not taking credit, no liability to pay interest. Hence, we find that against show-cause notice dated 04.12.2006, the appellant is not liable to pay interest on the reversal of unutilized Cenvat credit and thus no penalty under Rule 25 of Central Excise Rules, 2002 can be imposed for that reason. Demand of interest in the other two show cause notices and imposition of penalty under Rule 25 of Central Excise Rules, 2002 in show cause notice dated 20.09.2006 - HELD THAT:- The inclusion of the terminal charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be imposed with penalty, if the Cenvat credit is reversed even before utilising the Cenvat credit. As regards the other two show-cause notices dated 27.02.2006 and 20.09.2006, the issues are regarding demand of interest and penalty for delay in payment of differential excise duty due to dispute on the inclusion of the terminal charges in the assessable value and due to price revision of petroleum products with retrospective effect, respectively. 2. The brief facts are M/s. Mangalore Refinery and Petrochemicals Ltd., (MRPL), the appellant is a Limited Company engaged in refining crude and manufacturing petroleum products. Appellant were issued with show-cause notice on 04.12.2006 alleging on that on scrutiny of ER-1 returns filed by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sals to impose penalty under Rule 27 and Rule 25 of Central Excise Rules, 2002, respectively. 4. The Adjudication authority vide Order-in-Original No. 37/2012 dated 14.09.2012 confirmed the demands of interest made in all the 3(three) show-cause notices and imposed penalty of Rs. 1,00,000/- under Rule 25 in the case of show cause notices dated 04.12.2006 and 20.09.2006 and dropped the proposal for penalty under Rule 27 in show cause notices dated 04.12.2006 and 27.02.2006. Aggrieved by same, appeal was filed before the Commissioner (Appeals) and Commissioner (Appeals) rejected the appeal. Aggrieved by said order, present appeal is filed before the Tribunal. 5. The learned counsel as regards interest liability on Cenvat credit availed in boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. State of Karnataka and others -(2021) 12 SCC 812, Commissioner of Central Excise, Pune Vs. SKF India Ltd. 2009 (239) E.L.T. 385 (S.C) and Steel Authority of India Vs. CCE, Raipur 2019 (366) E.L.T. 769 (S.C). 7. Learned Authorised Representative (AR) for Revenue reiterated the findings in the impugned order and submits that once the goods are removed and duty is not paid, the respondent is liable to pay duty with interest as applicable. In the present case, though they have paid excise duty as applicable they are liable to pay interest and adjudication authority rightly confirmed demand of interest and imposed penalty. Learned AR further submits that the issue regarding payment of differential duty and interest is settled by the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no dispute on these two issues. We find that the appellant has paid the differential duties and is only contesting the payment of interest and imposition of penalty. We find that since there is no limitation prescribed under the statute for payment of interest and there is no interest on the interest, the appellant is liable to pay interest for the period of delay in payment of differential duty, we find that once the differential duty is paid, consequentially the interest for the delayed payment need to be paid, hence we find that the interest on delayed payment of duties in these two show cause notices was rightly confirmed by the Adjudicating and the Appellate authorities and is tenable. As regards the imposition of penalty under Rules ..... X X X X Extracts X X X X X X X X Extracts X X X X
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