2017 (5) TMI 668

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....r the Respondent ORDER The above appeal is filed by the appellant aggrieved by the confirmation of interest and penalty. 2.   The appellants are engaged in manufacture of hermetically sealed compressors and parts thereof. During the course of audit, it was noticed for the year 2008-09, the appellants had written off obsolete items (inputs) valuing at Rs. 1,03,08,653/- on which they ha....

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....llant. 3.   On behalf of the appellant, the learned counsel Shri G. Prahlad submitted that the appellant is contesting only the interest and penalty. The irregularly availed credit has been reversed by the appellant immediately on being pointed out by the Department. The appellant had sufficient balance at the time of taking credit as well as reversal of the same. Therefore, the credit ....

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.... during the relevant time, the above judgment relied by appellant would not apply. 5.   I have heard the submissions made before me. The issue that poses for consideration is whether the appellants are liable to pay interest and penalty when the irregularly availed credit has been reversed before utilisation. The issue stands settled by the judgments relied upon by the learned counsel f....