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TMI Blog2004 (6) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... n their factory premises; that they have availed Modvat credit of the duty paid on HSD oil used as inputs for generation of electricity under Rule 57B of the Central Excise Rules, 1944; that the Inspector Central Excise under letter dated 30-4-97 advised them to reverse the Modvat credit taken by them in respect of duty paid on HSD oil as the same is not admissible; that they have filed writ petition in the High Court of Rajasthan agitating that Modvat credit has been specifically allowed to them on HSD oil under Rule 57B of the Central Excise Rules and the clarification issued by the Chief Commissioner is bad in law; that the High Court of Judicature for Rajasthan in its Order dated 28-8-1997 stayed the operation of impugned Circular and T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt's Stay Order dated 28-8-1997; that there is nothing on record to show that they had delayed the payment/reversal of the Modvat credit. Learned Advocate emphasised again that as the show cause notice issued to them denying the Modvat credit has been adjudicated only on 6-6-2002, no interest is chargeable from them with effect from 12-5-2000. He relied upon the decision of the Tribunal in the case of Poddar Pigments Ltd. v. CCE, Jaipur [2003 (155) E.L.T. 484 (Tri.)] wherein it has been held by the Tribunal that interest is not payable under Section 112(2) of the Finance Act, 2000 when the demand has been made on 4-8-2000 and the credit has been reversed on 28-8-2000. 3. Countering the arguments Shri H.C. Verma, learned Departmental Repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod of 30 days from the date on which the Finance Act, 2000 receives the assent of the President and in the event of non-payment of such credit of duty within this period, interest at the rate of 24% per annum shall be payable from the date immediately after the expiry of the said period of 30 days till the date of payment. In view of the specific provisions for the recovery of payment of interest made by the Parliament in Finance Act, 2000, the Appellants were required to deposit the entire amount of Modvat credit of the duty paid on HSD oil taken by them and which was objected to by the Department from the very beginning which is apparent from the letter dated 30-4-97 addressed by the Inspector Central Excise. The mere fact that the show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch. On the other hand, learned Departmental Representative has relied upon the decision in the case of Maharaja Shree Umaid Mills Ltd. (supra) which has been passed by a Division Bench of the Tribunal. The Tribunal in the said decision has observed that "the extent of credit that has been taken or utilised does not require any determination by the Central Excise officers. The information is available in the Appellants own records...... The consequences of non-payment of credit of duty taken/utilised, within a stipulated period, are spelt out in clause (b) of Section 112(2). Therefore, it was incumbent on the part of the Appellants to make suo motu payment of Modvat credit taken on HSD oil within the stipulated period. Having not done so, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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