2014 (2) TMI 822

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....: Archana Wadhwa Brief facts of the case are that during audit of records of the appellant, it was noticed that appellant was clearing imported raw materiel/inputs to its own Unit-II on reversal of CENVAT Credit under Rule 3(5) of the Cenvat Credit Rules, 2004 but actual amount of CENVAT Credit taken on such inputs was not reversed at the time of removal of inputs as such, which resulted in sho....

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....es, 2004 read with Circular No. 897/17/2009-CX dated 3.9.2009. The adjudicating authority confirmed the recovery of said interest vide impugned order. 2. The said order was put to challenge before Commissioner (Appeals) on the following grounds:-    "(iii) That entire issues revenue neutral, because Unit-II owns by appellant and duly registered with Central Excise as manufacturer. ....

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.... notice has been issued on 22.1.2010 whereas Section 11A of the Central Excise Act, 1944 prescribed ordinary period of demand of duty within 1 year period." 3. The appellant authority did not accept the above contention of the appellant and rejected the appeal. Hence the present appeal. 4. After hearing both the sides duly represented by Shri Jaydeep, learned advocate appearing for the appel....

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....the same. As such, the entire situation was revenue neutral. 6. I also further note that the said credit was not utilized by the appellant and was lying in their account books. The Hon'ble Karnataka in the case of CCE & ST, Bangalore Vs. Bill Forge Pvt. Ltd. [2012 (26) STR 206 (Kar.)] has held that where the credit has not been utilized, the same would not attract the interest provisions. The s....