2014 (7) TMI 319

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....plicant has filed this application for waiver of predeposit of interest of Rs. 14,39,255/- for the period March 2008 to July 2008. 2. Heard both sides and perused the records. 3. The relevant facts of the case, in brief, are that the applicant is engaged in the manufacture of motor vehicle parts. In the month of March 2008, they have erroneously shown the credit taken as Rs. 5,97,14,034/- instea....

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....he Hon'ble Supreme Court in the case of Union of India Vs. Ind Swift Laboratories Ltd. - 2011 (265) ELT 3 (SC) held that interest is payable on availment of the credit even then it was not utilized. She submits that this judgment was relied upon by the jurisdictional High Court in the case of CCE, Chennai Vs. Sundaram Fasteners Ltd. - 2014-TIOL-201-HC-MAD. 6. After hearing both sides and on perus....

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....ssessee uses the credit to make payment of excise duty on excisable product. Instead of paying excise duty, the cenvat credit is utilized, thereby it is adjusted or set off against the duty payable and a debit entry is made in the register. Therefore, this is a procedure whereby the manufacturers can utilise the credit to make payment of duty to discharge his liability. Before utilization of such ....

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....s payable from the date of book entry, showing entitlement of Cenvat credit. Interest cannot be claimed from the date of wrong availment of CENVAT credit and that the interest would be payable from the date CENVAT credit is taken or utilized wrongly. 7. I find that in the case of Sundaram Fasteners Ltd. (supra), the question of law before the Hon'ble High Court was that 'the Tribunal creation of ....