2011 (9) TMI 320

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....spondents   Heard both sides.   2. It is the case of the respondents that they had taken excess credit due to clerical error and they have reversed the credit as soon as it was pointed out by the audit. They had challenged the original order demanding interest and imposing penalty before the lower appellate authority, who has passed the order in their favour. However, Shri Masillam....

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....s penalty in view of the provisions of Rule 14 & 15 of the CENVAT Credit Rules, 2004.   4. After hearing both sides, I find that the issue as regards interest liability is settled by the said decision of the Hon ble Supreme Court in the case of Ind-Swift Laboratories (supra) and the respondents are also admitting their liability to pay the interest. Hence the impugned order is modified and....

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....which has been interpreted by the Hon ble Supreme Court in the case of Ind-Swift Laboratories (supra) to mean that taking of ineligible credit even if the same is not utilized brings an assessee under the mistake of Rule 14. By implication, merely taking of irregular credit even though not utilized will also bring an assessee under the provisions of Rule 15(1). The learned SDR has pointed out that....