2017 (11) TMI 1469

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uring the period 2011-12 to 2012-13, the appellant had wrongly availed Cenvat Credit of Customs Education Cess paid against the Bills of Entry. On being pointed out regarding such mistake, the appellant had reversed the Cenvat Credit taken by it. For recovery of wrongly availed Cenvat Credit, the Department initiated show cause proceedings, which culminated in the adjudication order dated 31.03.2016, wherein Cenvat Credit amounting to Rs. 21,44,480/- alongwith interest was confirmed against the appellant and penalty of Rs. 3,21,672/- was also imposed. The adjudication order was upheld by the ld. Commissioner (Appeals) vide the impugned order dated 01.06.2017. Hence, the present appeal is before the Tribunal. 2. The ld. AR appearing for t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s utilization, demand of interest and penalty cannot be confirmed against the appellant. 6. I find that the issue arising out of the present dispute is no more res-integra, in view of the judgment of Hon'ble Karnataka High Court in the case of Bill Forge Pvt. Ltd. (supra). The relevant paragraphs in the said judgment are extracted herein below:- "19. Rule 14 of the CENVAT Credit Rules, 2004 reads as under : Rule 14. Recovery of CENVAT credit wrongly taken or erroneously refunded. - Where the CENVAT credit has been taken or utilized wrongly or has been erroneously refunded, the same along with interest shall be recovered from the manufacture or the provider of the output service and the provisions of sections 11A and 11A....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he duty payable and a debit entry is made in the register. Therefore, this is a procedure whereby the manufacturers can utilise the credit to make payment of duty to discharge his liability. Before utilization of such credit, the entry has been reversed, it amounts to not taking credit. Reversal of cenvat credit amounts to non-taking of credit on the inputs. 21. Interest is compensatory in character, and is imposed on an assessee, who has withheld payment of any tax, as and when it is due and payable. The levy of interest is on the actual amount which is withheld and the extent of delay in paying tax on the due date. If there is no liability to pay tax, there is no liability to pay interest. Section 11AB of the Act is attracted onl....