2014 (11) TMI 89

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....the relevant period, the respondent has taken CENVAT credit facilities erroneously and the same has been reversed. Under the said circumstances, the respondent is bound to pay interest and penalty and for the purpose of claiming the same, show-cause notice dated 06.01.2005 has been issued. The demand made in the show-cause notice has been upheld in Order-in-Original No. 37 of 2005. The Order-in-Original has been challenged before the Commissioner of Appeals. The Commissioner of Appeals has partly set aside penalty and reduced it from Rs. 1,20,000/- to Rs. 10,000/- and subsequently an appeal has been preferred before the CESTAT. 3. The CESTAT, after considering the rival contentions putforth on either side, has allowed the appeal and ther....

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....nt Civil Miscellaneous Appeal is as to whether a mere taken of CENVAT credit facilities without actually using it, would carry interest as well as penalty? 6. The Appellate Tribunal has come to a definite conclusion to the effect that in the instant case the assessee has merely taken CENVAT credit facilities and before utilising the same, the Department has reversed it and therefore, the assessee is not liable to pay interest and penalty. 7. The learned counsel appearing for the appellant has contended elaborately that the reasoning given by the Appellate Authority for setting aside the order passed by the Authority is totally baseless by the Appellate Authority is liable to be set aside. 8. The entire argument putforth on the side....