Appellant not liable to reverse excess credit; interest not payable from wrong availment date. No penalty imposed.

The appellant appealed against the disallowance of cenvat credit inadvertently taken. The court found that the appellant had reversed the excess credit and was not liable to reverse it again. As there was sufficient cenvat credit available, no interest payment was required. The court held that interest is compensatory and payable only on delayed payment of duty, not from the date of wrong availment of cenvat credit. No penalty was imposed on the appellant, and the impugned order was set aside, allowing the appeal with any consequential relief.

---

---

Issues involved: Appeal against disallowance of cenvat credit inadvertently taken.

Summary:
The appellant appealed against an order disallowing cenvat credit inadvertently taken by them. The appellant had received services and taken cenvat credit on advance payment, later realizing the excess credit taken, adjusted it with another cenvat credit available. The revenue alleged double credit without proof of reversal, leading to the impugned order. Upon hearing both parties and examining records, it was found that the appellant had indeed reversed the excess credit taken, thus not liable to reverse it again. Additionally, as there was sufficient cenvat credit available, no interest payment was required based on a decision of the Hon'ble Karnataka High Court. The court held that interest is compensatory and payable only on delayed payment of duty, not from the date of wrong availment of cenvat credit. No penalty was imposed on the appellant, and the impugned order was set aside, allowing the appeal with any consequential relief.

---