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PJ/Case Laws/2012-13/1209

The interest is also payable if a manufacturer opt for proportionate reversal brought by retrospective effect for ongoing cases.
CASE: CCE, MANGALORE Vs M/s MANGALORE REFINERY & PETROCHEMICALS LTD
 
CITATION:2012-TIOL-1062-CESTAT-BANG
ISSUE:-The interest is also payable if a manufacturer opt for proportionate reversal brought by retrospective effect for ongoing cases.
BRIEF FACTS:The respondent had availed benefit of Cenvat credit of the inputs and has not paid amount equal to 8% of the value of the furnace oil cleared without payment of duty. Adjudicating authority confirmed the demand of 8% of the value of the goods but ld. Commissioner (Appeals) accepted the contentions of the respondent and held that the reversal of credit of the inputs which has gone into manufacturing of such furnace oil without payment of duty is enough. Revenue is aggrieved by this order and they are in appeal.
 
RESPONDENT’S CONTENTION:No one represented on behalf of the respondent.
REASONING OF JUDGEMENT:Due to retrospective amendment of Rule 6 vide Section 71 of the Finance Act, 2010, the procedure for reversal of Cenvat credit on the inputs utilized for the exempted products cleared, was given statutory sanction. Appellants undisputedly had agreed to pay the amount even prior to the scheme being statutorily brought in by retrospective amendment. The only question remains that whether appellant is liable for payment of interest or not. Tribunal found that the ld. Commissioner (Appeals) has already held that the appellant is required to reverse the Cenvat credit on the inputs used in the exempted goods along with interest. No irregularity is found in the said order due to the retrospective amendment
 
DECISION:The appeal is rejected.

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