UNION OF INDIA Vs. KENNAMETAL WIDIA INDIA LTD

JUDGEMENT

(1.) This central excise appeal is filed under Section 35G(2) of Central Excise Act (for short "the Act") by the Revenue challenging the order passed by the Customs, Excise and Service Tax Appellate Tribunal, South Zone Bench, Bangalore (for short "Tribunal"), dated 8-9-2005 in E.A. No. 1114/2003 allowing the said appeal that was filed by the assessee and thereby reversing the concurrent findings of the Assessing Authority and First Appellate Authority on the question of payment of interest on the Modvat credit which was wrongly availed by the Assessee.

(2.) Stated in brief the facts leading to the present appeal are as under :

(3.) We have heard the submission of the learned counsel for both the parties. Shri T.M. Venkata Reddy, learned Central Govt. Standing Counsel, contended that the Tribunal committed serious error in reversing the concurrent findings of the First Appellate Authority and Assessing Authority holding that since the respondent assessee had reversed the credit wrongly availed by him before the Assessing Authority could issue show cause notice against him he was not liable to pay interest on the said credit. He further submitted that the Tribunal did not properly apply to the facts of the present case the principles laid down in the case of Rashtriya Ispat Nigam Ltd. V/s. CCE, Visakhapatnam, 2003 161 ELT 285 that was upheld by the Hon'ble Apex Court in the case reported in 2004 (163) E.L.T. A53 and also the principles laid down by this Court in CCE, Mangalore V/s. Shree Krishna Pipe Industries, 2004 165 ELT 508