2017 (3) TMI 838

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....envat Credit availed during the period September 2008 and July 2009, during which the appellant cleared their final product availing the exemption from payment of duty under notification no. 6/2006-CE dated 01.03.2006. Since final product manufactured and cleared by the appellant was exempted from payment of duty, the Department took the view that they were not entitled to avail the Cenvat Credit in terms of Rule 6(1) of the Cenvat Credit Rules 2004. On being pointed out the appellant reversed the impugned credit and intimated the Department. However, the Department issued show cause notice and adjudicated the matter resulting in the issue of the impugned order-in-original in which the Commissioner ordered recovery of the inadmissible Cenva....

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..... He submitted that Rule 11 of the Cenvat Credit Rules has been amended in 2013 to clearly indicate that interest will be payable only in the case where the inadmissible credit has been taken and utilized. He submitted that the disputed period is prior to such amendment and for such period the issue is settled that even if the inadmissible Cenvat Credit has not been utilized interest will be liable to be paid. 6. In this case he placed reliance on the following case laws: i) Shree Cement Ltd. Vs. CCE Jaipur vide final order no. 55594-55595/2016 dated 25.11.2016. ii) UOI Vs. Ind-Swift Laboratories Ltd. 2011 (265) ELT 3 (SC) iii) CCE Raipur Vs. Vandana Vidyut Ltd. 2013 (331) ELT 231 (Chattisgarh). iv) CCE Pune Vs. GL & V India ....

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....in the case of Union of India vs. Ind-Swift Laboratories Ltd.- 2011 (265) E.L.T. 3 (S.C.), where it has been held that where Cenvat Credit is taken OR utilized wrongly, the same along with the interest is to be recovered from manufacturer or the provider of the output service. The Hon'ble Supreme 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....

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....ions 'taken' or 'utilized wrongly' or has been erroneously refunded' as the word "AND". On the happening of any of the three aforesaid circumstances such credit becomes recoverable along with interest. 6.1. The case laws cited by the appellant cannot make them entitled to the interest relief as the ratio of Hon'ble Supreme Court decision in case of Ind-Swift Laboratories Ltd. is very clear; Hon'ble Supreme Court decision in the case of Chandrapur Magnet Wires (P) LTD. vs Collector of C. Excise, Nagpur-1996 (81) E.L.T. 3 (S.C.) cited by the appellant would not be applicable to the facts of the present case, and therefore is inapplicable. Hon'ble Chhattisgarh High Court in the case of Vandana Vidyut Ltd. (supra) int....