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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
MS. JYOTI BALASUNDARAM, VICE-PRESIDENT
Commissioner of Central Excise, Salem -Appellant
Versus
Needle Industries (India) (P.) Ltd. -Respondent
FINAL ORDER NO. 486 OF 2011, APPEAL NO. E/28 OF 2011 CROSS OBJECTION NO. E/CO/7 OF 2011
Decided On : 28-03-2011
C. Rangaraju,R. Janardhanan Pillai
1. The Revenue is aggrieved by the order of the Commissioner of Central Excise (Appeals) setting aside the recovery of interest of Rs.1,84,600/- on delayed payment of excise duty on jig wires and jig rods manufactured and captively consumed during the period May 2000 to August 2002, and appropriating the same out of the rebate amount sanctioned to the assessees.
2. I have heard both sides. Duty liability of the assessees has not been determined finally as the assessees have challenged the liability to duty in an appeal bearing No. E/837/2006. The question of recovery of interest will arise only when the duty liability is finally determined. Therefore, the lower appellate authority has rightly set aside the recovery of the said amount at this stage i.e. prior to determination of duty liability which is pending before the Tribunal. I, therefore, uphold the impugned order and reject the appeal.
3. The cross objection being only in the nature of comments upon/reply to the Revenue’s appeal is dismissed.
