2010 (3) TMI 512

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....he Appellant. Shri T.H. Rao, SDR, for the Respondent. [Order]. - Heard both sides. The issue in this case relates to payment of interest in respect of Cenvat credit taken but not utilized. The authorities below have held that in view of Rule 14 of the Cenvat Credit Rules, 2004, interest is payable on Cenvat credit wrongly taken even if not utilized. They have also placed reliance on the Boar....

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.... has to be read down to mean that where CENVAT credit has been taken and utilized wrongly, interest should be payable on the Cenvat credit taken and utilized wrongly. Interest cannot be claimed simply for the reason that the CENVAT credit has been wrongly taken as such availment by itself does not create any liability of payment of excise duty. On a co-joint reading of Section 11AB of the Act and ....

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....d by the Hon'ble Supreme Court, the same has to be respected and followed. In any case, I find that the issue dealt thereunder was in the context of erstwhile Rule 57-I of the Central Excise Rules, 1944, and the order was against the department. Subsequently, we have the benefit of the decision of the Hon'ble High Court of P&H in the case of Ind-Swift Laboratories (supra) in the context of the pre....