TaxTMI 
TaxTMI 
2015 (10) TMI 789
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....t, M/s. Force Motors Ltd., Pune, had taken inadmissible cenvat credit amounting to Rs. 4,38,508/- and Rs. 25,706/- which was reversed on pointing out by the department. The appellant also paid the interest. Subsequently, in respect of inadmissible credit of Rs. 4,38,508/-, a show cause notice was issued only proposing imposition of penalty under Section 11AC read with Rule 15 of the Cenvat Credit Rules, 2004 and recovery of interest under Section 11AB. In the adjudication, demands of penalties and interest were confirmed. Aggrieved by the adjudication orders, the appellant preferred appeal before the Commissioner (Appeals) who also upheld the penalties and interest. Aggrieved by the impugned orders, the appellant is before me. 3. Shri H.S.....
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....ELT 3 (SC). As regards interest, he submits that in case of wrong availment of cenvat credit, the period of interest should be reckoned right from the date of availment of credit and not from the utilization of the credit. This has been held by the Hon'ble Supreme Court in the case of UOI vs. Ind-Swift Laboratories Ltd. reported in 2012 (25) STR 184 (SC). 5. I have carefully considered the submissions made by both the sides. As regards appeal No. E/361/10, it is observed that the show cause notice was issued only for demand of interest and penalty as the cenvat credit was suo motu paid by the appellant. In this fact, I find that the determination of demand was not made under Section 11A(2). Section 11AC can be invoked only in cases whe....
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.... of penalty liable to be paid by such person shall be twenty-five per cent, of the duty so determined; (d) where the appellate authority modifies the amount of duty of excise determined by the Central Excise Officer under sub-section (10) of section 11 A, then, the amount of penalties and interest payable shall stand modified accordingly and after taking into account the amount of duty of excise so modified, the person who is liable to pay duty as determined under sub-section (10) of section 11A shall also be liable to pay such amount of penalty or interest so modified. Explanation.- For the removal of doubts, it is hereby declared that in a case where a notice has been served under sub-section (4) of section 11A and subsequent to issue o....