2013 (11) TMI 782

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....d 12/1/2009 against RA bill No. 02 dated 28/07/2007 of M/s. BHEL against the services utilized in their captive plant. Subsequently, they again took the credit of the said amount against same invoice vide entry Sl. No. 2826 dated 16/01/2009 resulting in double credit against an invoice. The excess credit of Rs. 22,52,527/- taken was reversed by the appellant from their Cenvat credit account on 30/01/2009 but the interest amount of Rs.2,67,156/- has not been paid by them. Therefore, the proceedings were initiated by issuing a show cause notice for demand of interest under Rule 14 of Cenvat credit Rules, 2004 read with Section 11 AB of Central Excise Act, 1944. Adjudicating authority confirmed the demand. Commissioner (Appeals) relying on the....

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....x Court in case of Commr. Vs. Bombay Dyeing and Mfg. Co. Ltd.-2007 (215) E.L.T. 3 (S.C.), held that under Notification 14/2002-CE, the requirement was that exemption on grey fabrics was admissible subject to the assessee paying duty on yarn before claiming exemption and subject to the assessee not claiming CENVAT credit before claiming exemption. The assessee paid the duty on the input (yarn) and the assessee got the credit which was never utilized, that before utilization, the entry has been reversed. Honble Court held that this amounts to not taking credit, hence, the condition that assessee not claiming Cenvat credit before claiming exemption is satisfied and the benefit of exemption was extended. He reiterated the judgement of the Hon'....

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....            Rule 14. Recovery of CENVAT credit wrongly taken or erroneously refunded:- Where the CENVAT credit has been taken or utilized wrongly or has been erroneously refunded the same along with interest shall be recovered from the manufacturer or the provider of the output service and the provisions of Sections 11A and 11AB of the Excise Act or Sections 73 and 75 of the Finance Act, shall apply mutandis for effecting such recoveries. 9. The Apex Court in case of M/s. Ind-Swift Laboratories Pvt. Ltd. (supra) held that-          2. A bare reading of the said Rule would indicate that the manufacturer of the provider of the output service bec....