TaxTMI 
TaxTMI 
2014 (12) TMI 200
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....s credit availed by them before utilisation. 3. The brief facts of the case are the appellants are engaged in manufacture and clearance of excisable goods falling under Chapter 84 and 87 of Central Excise Tariff Act, 1985 and also availing Cenvat credit of input and capital goods under Cenvat Credit Rules, 2004. During the course of verification of records by the department, it was found that the appellants have availed Cenvat credit wrongly and on being pointed out by the department, the appellants reversed the entire amount of credit availed by them. The question has arisen whether the appellants are liable to pay interest on reversal of excess credit availed by them before utilization and whether liable to penalty. 4. The case of the d....
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....nto account the amendment also while arriving at the conclusion. The observations of Hon'ble High Court in paragraphs 5 to 12 are relevant and are reproduced herein below : 5. The short point involved in the present 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. ....
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....ted in 2012 (26) S.T.R. 204 (Karnataka) (Commissioner of Central Excise & S.T Bangalore Vs. Bill Forge Private Limited) -(2011-TIOL-799-HC-KAR-CX) and ultimately found that mere taking of CENVAT credit facilities is not at all sufficient for claiming of interest as well as penalty. 11. It is an admitted fact that Rule 14 of the Cenvat Credit Rules has been subsequently amended, wherein it has been clearly stated as 'taken and utilised'. Therefore it is quite clear the mere taking itself would not compel the assessee to pay interest as well as penalty. Further, as pointed out earlier, the subsequent amendment has given befitting answer to all doubts existed earlier. Since the subsequent amendment has cleared all doubts existed earlier in re....