2016 (12) TMI 582

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....to Rs. 35,14,493/-. 2. The appellant has been represented by ld. Advocate, Ms. Rinky Arora and the department has been represented by the ld. AR, Sh. Yogesh Agarwal. 3. Based on the appeal memorandum the ld. Advocate submits that the appellant reversed entire Cenvat Credit and did not utilize the same; therefore, interest should not be charged for the same. In support she cites the Hon'ble Karnataka High Court decision in case of Commissioner of C.EX. & S.T., LTU, Bangalore Vs Bill Forge Pvt. Ltd.-2012 (279) E.L.T. 209 (Kar.) and Hon'ble Supreme Court decision in case of Chandrapur Magent Wires (P) Ltd. Vs. Collector of C. Excise, Nagpur-1996 (81) ELT 3 (S.C.) 4. Ld. AR, Sh. Yougesh Agarwal reiterates the findings given in the impu....

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....preme Court in the said case specifically lays down that even when the Cenvat Credit has not been utilized, though taken wrongly the liability of interest would arise for the period when it was lying in the account of the assessee. The Hon'ble Supreme Court in the said case of Ind-Swift Laboratories Ltd. inter alia observes as under:- 17. We have very carefully read the impugned judgment and order of the High Court. The High Court proceeded by reading it down to mean that where CENVAT credit has been taken and utilized wrongly, interest should be payable from the date the CENVAT credit has been utilized wrongly for according to the High Court interest cannot be claimed simply for the reason that the CENVAT credit has been wrongly t....