2017 (9) TMI 75

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....t Present Shri R.K. Mishra, DR for the respondent ORDER Per: V. Padmanabhan 1. The appeal is against Order in Appeal No.17/2014 dated 29/05/2014. The appellant is engaged in the manufacture of electrical goods falling under Chapter No.84 and 85 of the 1st Schedule to Central Excise Tariff Act, 1985. The appellant is also availing the facility of Cenvat credit under Cenvat Credit Rules,....

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..../-. The department issued show cause notice proposing to charge interest and penalty on the appellant. After the process of adjudication, the Ld. Commissioner ordered payment of interest amounting to Rs. 33,64,153/- as well as imposed penalty of an amount equal to the wrongly availed credit. Aggrieved by the impugned order the present appeal has been filed. 2. With the above background heard Sh....

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.... utilization was the subject matter of legal interpretation. Accordingly, he submitted that penalty may be set aside. 3. Heard Shri R. K. Mishra, Ld. DR. He submitted that even if the irregularly availed credit has been reversed, the fact remains that such reversal was done by the appellant only after the same was detected by the department during investigation against the appellant. He submitt....

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....ecision of Apex Court in the case of Ind-Swift Laboratories Ltd.[2011(265) ELT 3(SC)] and held that if the Cenvat credit availed by the assessee wrongly but same has been reversed before utilization of the same, no interest is payable by the assessee. Therefore, relying on the above cited decision, we hold that appellant is not liable to pay interest since Cenvat credit availed by them wrongly has....