Intrest not payable when not utilized notification no

[Deepak Bhardwaj]

Please provide the notification no which was state that interest not payable when not utilized .

[PAWAN KUMAR]

Central Excise Non-Tariff Notification No.18/2012-C.E.(N.T.) Dated 17.03.2012 amending the definition of rule 14 of Cenvat Credit Rule, 2004 2004, w.e.f. 17.03.2012.

[Rakesh Chitkara]

If period involved is prior to 1.4.12 : Matter is in controversy for the period prior to this amendment , nullifying Supreme Court decision in Ind-Swift case (favouring Revenue). Luckily that decision is now not valid as the Cenvat Credit Rule 14 has been amended (rare thing that some thing is done in favour of assessee and the word 'or' has been replaced by 'and'. Rule 14 of Cenvat Credit Rules, as amended w.e.f. 1-4-2012 uses words ‘availed and utilised’.  Hence, if Cenvat credit was wrongly taken but not utilised for payment of excise duty or service tax, interest is not payable.

There have been some other decisions of Tribunals lately which have sought to distinguish Ind-Swift. For instance, 2013 (7) TMI 567 - CESTAT NEW DELHI [Commissioner of Central Excise, Allahabad Versus M/s. Balrampur Chini Mills Ltd. and M/s. Jaypee Cement Blending Unit] and 

Contest the case if for prior period, if the amount of demand is substantial. Some case-laws (mostly against you) can be referred to understand the issue in detail

ANNAVARMA CONCRETE

EMCO LTD.

HINDUSTAN INSECTICIDES LTD

Gujarat State Fertilisers & Chem.

GENUS ELECTROTECH LTD

K.L. CONCAST (P) LTD.

DENSO KIRLOSKAR

LAKSHMI MACHINE WORKS

[Rakesh Chitkara]

Another decision has been reported in TMI in favour of assessee today on the issue. Case of Bill Forge (Karnataka High Court) =  [2011 (4) TMI 969 - KARNATAKA HIGH COURT] has been relied upon, while distinguishing Supreme Court order in Ind-Swift case (2011 (2) TMI 6 - Supreme Court). 

M/s. Gary Pharmaceuticals (P) Ltd. Versus Commissioner of Central Excise, Ludhiana.  = (2013 (11) TMI 780 - CESTAT NEW DELHI)

AI Summary

Discussion on Non-Payment of Interest for Unutilized Cenvat Credit per Amendment to Rule 14, Cenvat Credit Rules A discussion on a forum regarding the non-payment of interest when Cenvat credit is not utilized. A user inquires about the relevant notification, and responses reference Central Excise Non-Tariff Notification No.18/2012-C.E.(N.T.), which amended Rule 14 of the Cenvat Credit Rules effective from 17.03.2012. It specifies that interest is not payable if credit is taken but not utilized. The amendment, effective from 1.4.2012, replaced 'or' with 'and' in the rule, altering the interpretation that previously favored revenue as per the Supreme Court's decision in the Ind-Swift case. Various tribunal decisions are also mentioned.