2016 (6) TMI 273

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....aken cenvat credit, which was not utilized by the Appellant, M/s The Simbhaoli Sugar Mills Ltd. 3. The appellant represented by the ld.Advocate, Mr. Rajesh Chibber, mainly argues that there has been an amendment in Rule 14 of Cenvat Credit Rules, 2004, whereby the wordings Cenvat credit taken or utilized wrongly were replaced by Cenvat credit taken and utilized, saying that when they did not utilize the Cenvat credit liability of interest cannot be fixed against them. 3.1 The appellant also cites following case laws in support of their stand :  (i) Commr. of Central Excise, Allahabad : Balrampur Chinni Mills Ltd. : 2014 (300) ELT 449 (Tri.-Del.) ;  (ii) GTL Infrastructure Ltd. Vs. Commr. of Service Tax, Mum....

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....lf and which is not the case here. 5. We have carefully considered the facts on record as well as the submissions made by both the sides. The appellant is a manufacturer of sugar and had taken wrong Cenvat credit of Rs. 4 lakhs (approx.) on various goods, which were later on found not entitled to the said Cenvat credit. When it was pointed out so by Audit, the appellant immediately reversed the wrongly taken Cenvat credit. It has been found that there was no malafide intention in this regard on the part of the appellant. The liability of interest for which SCN was issued is about Rs. 59,895/- only. 5.1 The main issue here is, where the appellant has taken wrong Cenvat credit by mistake, as they were not knowing that the goods in quest....

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.... therefore the facts of this case are similar to the case of Bill Forge Pvt. Ltd. (supra) and distinguishable from the facts of the case of Ind-Swift Laboratories Ltd. (supra), as in the case of Ind-Swift Laboratories Ltd. (supra), the Cenvat Credit was taken by the assessee on the strength of fake invoice and credit was not reversed by them but it was recovered by way of demanding duty. Therefore, the said facts are not applicable to the facts in hand. (emphasis supplied). In these terms, we hold that the appellants are not liable to pay interest for wrongful availment of Cenvat Credit which has been reversed before utilization by the appellant in light of the decision of the Hon'ble High Court in the case of Bill Forge P. Ltd. (supra) whi....