2017 (7) TMI 333

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....The assessee had reversed the credit on 30th November 2009 but, apparently irked by the failure to pay the interest thereon, was served with a show cause notice which, upon adjudication, confirmed the duty liability, along with interest thereon, besides imposing penalty. The first appellate authority set aside the penalty. 2.   Heard both Learned Counsel for appellant and Learned Authorised Representative. 3.   It is not in dispute that the appellant is primarily an exporter and, in consequence, has accumulated huge credit in the CENVAT account with the disputed amount being but a negligible proportion of the credit available. The first appellate authority has relied upon a strict construction of the expression in rule....

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....tatis mutandis for effecting such recovery. 6.   From the above, it is clear that the recovery of wrongly availed/utilised credit is to be accompanied by recovery of interest and, for such recovery, section 11A and section 11 AB shall be the instruments. The proceedings against the appellant were initiated on 12th April 2011 which is clearly beyond the normal period of  limitation in connection with the alleged incorrect availment of credit. The period of limitation is liable to be extended only upon a finding of existence of ingredients such as fraud, suppression etc. Invoking of the extended period would, therefore, not be consistent with the findings of the first appellate authority that the wrong availment is nothing bu....

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....his Cenvat credit, because they admitted the mistake, the assessee is liable to pay interest from the date the entry was made in the register showing the availment of credit. According to the Revenue, once tax is paid on input or input service or service rendered and a corresponding entry is made in the account books of the assessee, it amounts to taking the benefit of Cenvat credit. Therefore interest is payable from that date, though, in fact by such entry the Revenue is not put to any loss at all. When once the wrong entry was pointed out, being convinced, the assessee has promptly reversed the entry. In other words, he did not take the advantage of wrong entry. He did not take the Cenvat credit or utilized the Cenvat Credit. It is in th....