(Querist) 14 August 2008
This query is : Resolved
Can anybody provide case law details (Citation) related to Interest demand by Department for payment of duty on monthly basis for removal of input and capital goods as such. (Other than KLRF textiles vs. CCE, Tirunelveli 2005 (188) ELT 169). I shall be thankful if the webside details are also provided.
(Expert) 15 August 2008
I couldnot understand the problem as such, so if u expalin me in detail, i can be of some help. Probably you are asking this: When inpus or capital gods are transferred as such, the department insist that credit should be reversed immediately. When monthly payment is made, department ask for interest? This view is totally wrong. Reversal of such credit amounts to payment of duty as per Cenvat Credit Rules, and hence required to be paid on monthly basis.