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of <h1>Appeal Allowed: No Interest on Reversed Cenvat Credit Before Show Cause Notice</h1> The appeal was allowed as the Member (T) concluded that there was no basis for charging interest on reversed Cenvat credit that occurred before the ... Interest on credit wrongly taken Issues:Recovery of interest on reversed Cenvat credit.Analysis:The case involved a situation where the appellants had reversed the Cenvat credit before the issuance of the show cause notice. The advocate cited a previous Tribunal case where it was held that interest is not required to be paid if the credit was repaid within a specified period. The advocate argued that the impugned order should be set aside concerning the interest demanded. The Joint CDR, however, supported the order-in-appeal which stated that interest could be demanded irrespective of whether the amount was utilized or not. The relevant Rule 57AH also supported the recovery of interest on wrongly taken credit.Upon examination of the case record and arguments from both sides, the Member (T) noted that while there are provisions for the recovery of interest, in this particular case, the credit reversal occurred well before the show cause notice was issued. Citing a CEGAT order referred to by the advocate, it was concluded that there was no basis for charging interest in this scenario. Consequently, the order of the Commissioner (Appeals) and the original Authority regarding the charging of interest was set aside. The appeal was allowed, providing consequential relief to the appellants.
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