TaxTMI 
TaxTMI 
2014 (4) TMI 574
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....f books and accounts of the appellant it was observed that they had availed credit of Rs. 84,761/- on the input services which were in fact used in their other unit commissioning at Mandhar. Since the input services were not used in the factory of the appellant it appeared that the said credit amounting to Rs. 84,761/- was not admissible to them. On being pointed out the appellant had reversed the entire credit of Rs. 84,761/- on 22-6-07 and 31-7-07. However, a show cause Notice dated 31-7-07 was issued proposing disallowance recovery of inadmissible credit along with interest payable thereon and appropriation of amount paid towards such recovery. The said notice also proposes imposition of penalty on the appellants under Rule 15 of Cenvat ....
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.... reversed before utilization, it would mean that Cenvat credit has not been taken. In view of this decision Board vide Circular No. 858/16/2007-CX., dated 8-11-2007 also clarified that if Cenvat credit is reversed before utilization, it would amount to credit not having been taken. Though above decision and Board's clarification was with reference to different matter, principle laid down can be applied in general. In the present matter the appellant had reversed the credit without utilization. In the circumstances since it amounts to non availment of credit, there is no question of payment of interest. Hon'ble High Court of Punjab & Haryana in its decision in the case of Swift Laboratories Ltd. v. Commissioner - 2009 (240) E.L.T. 328 have h....