TaxTMI 
TaxTMI 
2015 (4) TMI 956
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.... Excise Tariff Act 1975. They availed Cenvat Credit on the inputs and capital goods under the Cenvat Credit Rules 2004. Show cause notice dtd 6.4.2005 was issued proposing an amount of Rs. 1,34,07,353/- wrongly availed Cenvat Credit and paid by the appellant should not be appropriated in the Govt. account alongwith interest and imposition of penalty. By the impugned order, the Adjudicating Authority confirmed the demand of wrongly taken cenvat credit alongwith interest and appropriated the said amount as deposited by them and imposed a penalty of Rs. 1,00,00,000/- under Rule 13(1) of Cenvat Credit Rule 2002/Rule 15(1) of Cenvat Credit Rule 2004. 2. The Ld Advocate on behalf of the appellant submits that they have not utilised the credit as....
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.... therefore interest on reversal of excess credit is not sustainable. It is noticed that the Adjudicating authority had not disputed the fact of non-utilization of credit by the appellant. The Ld Authorised Representative strongly relied upon the decision of the Hon ble Supreme court in the case of Ind-Swift Laboratories Ltd (supra) on the proposition that interest on irregular credit would arise from the date of availing of such credit. We find that the Hon ble Karnataka High Court in the case of Bill Forge Pvt Ltd (supra), after considering the decision of the Hon ble Supreme Court in the case of Ind-Swift Laboratories Ltd held as under : "In the instant case, the facts are not in dispute. The assessee had availed wrongly the Cenvat....
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.... it is as if that the Cenvat credit was not available. Therefore, the said judgment of the Apex Court has no application to the facts of this case. It is only when the assessee had taken the credit, in other words by taking such credit, if he had not paid the duty which is legally due to the Government, the Government would have sustained loss to that extent. Then the liability to pay interest from the date the amount became due arises under Section 11AB, in order to compensate the Government which was deprived of the duty on the date it became due. Without the liability to pay duty, the liability to pay interest would not arise. The liability to pay interest would arise only when the duty is not paid on the due date. If duty is not payable....