Tag: CESTAT Kolkatta

GST ArticlePre-GST

No liability to pay interest in a revenue-neutral situation

byCA Bimal Jain

The CESTAT, Kolkata in M/s Jai Balaji Industries Limited v. Commissioner of Central Excise, Bolpur set aside the order confirming interest on differential duty and held that where the differential duty paid by the assessee is available as CENVAT credit to the Assessee’s sister concern then it is a revenue-neutral situation. Thus, as duty was not actually payable, the payment of interest does not arise in the case of revenue neutral situation.

GST ArticlePre-GST

Unused CENVAT Credit does not incur any interest liability

byCA Bimal Jain

The CESTAT, Kolkata in M/s. National Aluminium Company Limited v. Commissioner of Central Excise & Service Tax held that the amendment in Rule 14 of the CENVAT Credit Rules, 2004 which previously read as ‘taken or utilized’ but was changed to ‘taken and utilized’, clearly indicated the intention of the legislature not to impose interest where the credit had been taken but not utilized.