CCE Vs. PSA SICAL TERMINAL LTD.

JUDGEMENT

(1.) THIS is an appeal by the department against the order of the Commissioner (Appeals) No. 202/2010 dated 31.05.2010.

(2.) NONE appears for the Respondents. There is a request for seeking adjournment of hearing fixed for today.

(3.) A Show Cause Notice dated nil was issued in September 07 proposing a demand of interest of Rs. 52,162/ - relating to the period December, 2005 to September, 2006, on the ground that Rule 4 (7) of the Cenvat Credit Rules, 2004, has been violated. The Respondents filed reply dated 12.11.07. The original authority passed the order nearly after a year, on 23.12.08. From the records, it appears that no personal hearing had been granted, before passing the order. The original authority has chosen to conclude that the Assessee failed to substantiate their claim of non -availment of credit. He accordingly, confirmed the demand of interest of Rs. 52,162/ -. Before the Commissioner (A), the Respondents raised the issue of violation of principles of natural justice and claimed that the credit in dispute was not utilized and the concerned officials were free to conduct verification of relevant records and returns. In the light of the above, the Commissioner (A) has remanded the matter to the original authority.