2016 (11) TMI 512

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nce both these appeals are disposed of by this common order. 2. Briefly the facts of the present case are that the appellant is engaged in the manufacture of electronic connector harness and other IT products classifiable under Chapter 85 of the First Schedule of CETA, 1985. The appellant availed CENVAT credit of duty paid on inputs and capital goods and service tax paid on input services. In the month of March 2009, audit party visited the appellant s premises and audit party observed that the appellant has availed CENVAT credit twice on the same invoice and also that appellant availed CENVAT credit on same bill of entry and the said irregular credit worked out to Rs. 7,10,012/- and further 100% CENVAT credit has been availed in respect....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....der is not sustainable in law as the same has been passed by ignoring the provisions of the law and also without following the precedent decision on the same issue by the higher judicial forum and therefore the same is liable to be set aside. He further submitted that the appellant has committed inadvertent mistake by wrongly availing the CENVAT credit with no intention to evade payment of duty. As the appellant at the time of availment of irregular credit used CENVAT credit accumulated in their books of accounts to the tune of Rs. 12/- crores whereas CENVAT credit availed was only to the tune of Rs. 18,57,641/- during the relevant period. He further submitted that reversal of CENVAT credit wrongly availed and reversed before utilisation am....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nataka High Court in the case of Commissioner of Central Excise vs. Bill Forge cited supra and the Hon'ble High Court of Karnataka has observed in para 21 as follows: 21. Interest is compensatory in character, and is imposed on an assessee, who has withheld payment of any tax, as and when it is due and payable. The levy of interest is on the actual amount which is withheld and the extent of delay in paying tax on the due date. If there is no liability to pay tax, there is no liability to pay interest. Section 11AB of the Act is attracted only on delayed payment of duty i.e., where only duty of excise has not been levied or paid or has been short levied or short paid or erroneously refunded, the person liable to pay duty, shall in a....