CCE Vs. M.M. FORGINGS LTD.

JUDGEMENT

(1.) HEARD both sides.

(2.) IT is the case of the Respondents that they had taken excess credit due to clerical error and they have reversed the credit as soon as it was pointed out by the audit. They had challenged the original order demanding interest and imposing penalty before the lower appellate authority, who has passed the order in their favour. However, Shri Masillamoney, learned consultant appearing on behalf of the Respondents submits that in view of the latest decision of the Hon'ble Supreme Court in the case of Union of India v. Ind -Swift Laboratories Ltd. : 2011 (265) ELT 3 (SC), even though a wrongly taken credit was not utilized the interest is payable. Hence the Respondents now admit their liability to pay the interest in terms of the cited decision of the Hon'ble Supreme Court. However, as regards the penalty imposed, the learned consultant states that the excess credits were taken on account of clerical error and there was No. suppression, fraud etc. involved and hence he prays for waiver of the penalty.

(3.) AFTER hearing both sides, I find that the issue as regards interest liability is settled by the said decision of the Hon'ble Supreme Court in the case of Ind -Swift Laboratories (supra) and the Respondents are also admitting their liability to pay the interest. Hence the impugned order is modified and the interest demand as ordered by the original authority is upheld.