2010 (2) TMI 432

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....or the Respondent. [Order]. - Heard both sides. 2. Appellants have challenged the Commissioner's Order for recovery of interest and imposition of penalty for CENVAT Credit wrongly taken. 3. The Appellants are engaged in the manufacture of carbon black falling under sub-heading 2803 00 10 of the first Schedule to CETA '85. They availed the facility of CENVAT credit. Their head office had d....

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.... at the appropriate rate and also imposed penalty under Rule 15(3) of Cenvat Rule, 2004. 4. The Appellants have contended that they have taken the credit, but not utilized the same. The Appellants have also contended that they have reversed the irregular credit on 9-7-2008 and 26-7-2008 and they have received the show cause notice on 4-9-2008, which is also clear from para 3.9 of the order-in-o....

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.... availed by assessee but lying unutilized. They also placed reliance on Tribunal decision in the case of Commr. of Cen. Ex. Kol.-IV v. Multiserve Rolls Ltd., 2007 (215) E.L.T. 119 (Tri.-Kolkata) wherein similar view was taken. 5. The Department contended that as per Rule 14 interest is payable for irregular CENVAT Credit taken or utilized and the decision of Hon'ble Punjab & Haryana High Court ....

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....14, I find that Rule 12 of Cenvat Credit Rules, 2002 and Rule 14 of Cenvat Credit Rules, 2004 both provide for recovery of CENVAT credit taken or utilized wrongly. Clause (2)(b) of clause 144 of Finance Bill of 2003 in respect of Cenvat Credit Rules, 2002 provided that "recovery shall be made of all the CENVAT credit, which have been taken and utilized but which would not have been allowed to be t....