2013 (1) TMI 168

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....ant has availed excess/ wrong credit amounting to Rs. 3,97,595/- on the inputs and input services on the invoices which were not in the name of the appellant. Such credit was availed in the month of May 2008 to August 2008 and December 2008. The said credit of Rs. 3,97,595/- was reversed by the appellant at the time of audit. Thereafter, proceedings were initiated which culminated in confirmation and appropriation of wrongly availed cenvat credit and demand for interest of Rs. 34,099/- and imposition of penalty of Rs. 1,53,138/- by the adjudicating authority. On an appeal filed by the respondent, learned Commissioner in the impugned order upheld the demand for cenvat credit but set-aside the demand for interest and reduced the penalty to Rs....

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....eal, the Circular of the Board was in force, appeal has to be dismissed. Since the judicial discipline requires the Tribunal to follow the law laid down by the Hon'ble High Court of Gujarat, I, respectfully following the same, dismiss the appeal filed by the Revenue. Therefore, enhancement of penalty as sought by the revenue cannot be allowed.   4. The assessee is in appeal against the demand for interest and imposition of penalty. As regards interest, with the decision of the Hon'ble Supreme Court in the case of Ind-swift Laboratories Limited, the matter attained finality and according to this decision, interest has to be paid even if credit has not been utilised. Therefore, assessee has not made out a case for waiver of interest a....

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....es and Section 11AB of the Act are not attracted and neither the penalty nor the interest is chargeable. The Division Bench of Punjab & Haryana High Court in the case of Commissioner of Central Excise, Delhi-III v. Maruti Udyog Limited, reported in 2007 (214) E.L.T. 173 (P & H) has held that the Assessee is not liable to pay interest as the credit was only taken as an entry in the Modvat record and was not in fact utilized. Against the above decision of the Punjab & Haryana High Court, Special Leave to Appeal (Civil) No. CC3915/2007 filed by Commissioner of Central Excise, Delhi-III has been rejected by the Apex Court on 14-5-2007 [2007 (214) E.L.T. A50 (S.C.)]. The decisions cited by the learned Additional Chief Standing Counsel are distin....