2013 (11) TMI 847

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....pellant under Rule 15 of CENVAT Credit Rules, 2004. However, no penalty was imposed under Section 11AC of the Central Excise Act, 1944. The issue involved was admissibility of credit on Rebar coils, CTD bars, TOR steel, Joist and Cement used in making civil structures and support for the capital goods. 2. Shri R. Subramanya, (Advocate) appearing on behalf of the appellant submits that in view of the following case laws, the Cement and other items for making foundation and support structures of machinery was admissible as CENVAT Credit. a) Bhushan Steels & Strips Ltd. Vs. CCE Raigad [2008 (223) ELT 517 (Tri-Mum)] b) Llyods Metal & Engineers Ltd. Vs. CCE [2008 (2226) ELT 599] c) Aditya Cement Vs. UoI [2008 (221) ELT 362 (Raj.] ....

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....rest, he relied upon the following case laws:- a) UoI Vs. Ind-Swift Laboratories Ltd. [2011 (265) ELT 3 (SC)] b) Vodafone Essar Cellular Ltd. Vs. CCE & ST, Pune-III [2013 (30) STR 81 (Tri-Mum)] It was his case that it has been held by Hon'ble Supreme Court in the case of UoI Vs. Ind-Swift Laboratories Ltd. (supra) that interest under Rule 14 of CENVAT Credit Rules, 2004 is chargeable even if credit taken is not utilized. 4. Heard both sides and perused the case records. The issue of taking of CENVAT Credit on materials used for making support structures for capital goods has been answered in favour of the Revenue by the Larger Bench in the case of Vandana Global Ltd. [2010 (253) ELT 113]. The credit of Rs.62,43,271/- has thus be....

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.... of Section 11AB would apply for effecting such recovery.        17. We have very carefully read the impugned judgment and order of the High Court. The High Court proceeded by reading it down to mean that where CENVAT credit has been taken and utilized wrongly, interest should be payable from the date the CENVAT credit has been utilized wrongly for according to the High Court 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. Therefore, High Court on a conjoint reading of Section 11AB of the Act and Rules 3 & 4 of the Credit Rules proceeded to hold that interest cannot be claimed f....