2018 (3) TMI 1244

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.... Singh, Advocate for the Appellants Shri Sanjay Jain, AR for the Respondent Per: V. Padmanabhan: The present appeal is filed against Order in original No. 36/2013 dated 18.9.2013. The appellant is engaged in the manufacture of woven fabrics of cotton and other textile fabrics. They were availing Cenvat credit facility under the Cenvat Credit Rules, 2004. During the period 2006-07 to 2007-....

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....the same was reversed for the reason that the appellant was exporter of fabrics and claim draw back. He relied on various judgements to submit that the revenue was not justified in charging interest on such cenvat credit, specifically he referred to the following decisions: 1) CCE, Madurai vs. M/s. Strategic Engineering (P) Ltd. [2014-TIOL-466-HC-MAD-CX]; 2) Gurmehar Construction....

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....has observed as under: "22. In the instant case, the facts are not in dispute. The assessee had availed wrongly the Cenvat credit on capital goods. Before the credit was taken or utilized, the mistake was brought to its notice. The assessee accepted the mistake and immediately reversed the entry. Thus the assessee did not take the benefit of the wrong entry in the account books. As he had....

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....see 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 those circumstances the Tribunal was justified in holding that when the assessee has not taken the benefit of the Cenvat credit, there is no liability to pay interest. Before it can be taken, it had been reversed. In other word....