2017 (12) TMI 538

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.....M. Dixit, Asstt. Commissioner(A.R.) for the Respondent ORDER The fact of the case is that appellant are engaged in the manufacture of excisable goods namely aluminium sheet/plate, laminated polystyrene sheet. They also availed Cenat credit facility in terms of provision under Cenvat Credit Rules, 2004. During the scrutiny of the documents by the auditor, it was observed that appellant had a....

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....interest ordered by the adjudicating authority, however penalty of Rs. 2000/- was set aside. Aggrieved by the order-in-appeal inasmuch as demand of interest was upheld, appellant filed the present appeal. 2. Shri. M.P. Joshi, Ld. Counsel for the appellant submits that interest was demanded under Rule 14 which is invokable only in case where credit was wrongly availed. In the present case the cr....

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.... He submits that issue of charging of interest in case of wrong availment of credit is settled in the Hon'ble Supreme Court in case of Union of India Versus Ind-Swift Laboratories Ltd. - 2011 (265) E.L.T. 3 (S.C.) therefore interest was rightly recoverable from the appellant. 4. I have carefully considered the submissions made by both sides and perused the record. 5. The interest was dem....

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....lant was entitled to take credit immediately on receipt of the capital goods in the factory. Once it was decided by the appellant that the machines not to be installed in the factory they suo moto reversed credit and declared in their ER-1 return in Feb, 2011. It is also fact on record, appellant have not utilized the said credit. In this fact availment of credit was legal and correct and hence it....