2018 (5) TMI 1298

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o Rs. 1,08,86,809/-, however the interest liability was not discharged. The issue in the present appeal is limited to charging of interest under Section 11AB of the Central Excise Act, 1944 and penalty under Rule 15(3) of Cenvat Credit Rules, 2004 read with Rule 25 of Central Excise Rules, 2002. The adjudicating authority confirmed the interest of Rs. 9,34,476/- and imposed penalty of Rs. 2,00,000/- under Rule 15(3) of Central Excise Rules,2004 read with Rule 25 of the Central Excise Rules, 2002. 2. Ms. Padmavati Patil, Ld. Counsel appearing on behalf of the appellant submits that the appellant have been maintaining the credit balance much more than the wrongly availed credit. In this regard she submitted statement showing the non-utilizat....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... that the appellant have wrongly availed the credit twice on the same invoice. It is only on pointed out by the EA-2000 Audit, the appellant reversed the credit. He further submits that the Hon'ble Supreme Court in the case of Union of India Vs. Ind-Swift Laboratories Ltd. 2012 (25) STR 184 (S.C.) held that even if the credit is not utilized, only on taking credit the interest is chargeable by interpreting Rule 14 of Cenvat Credit Rules, 2004. Therefore interest is legally chargeable. Since the appellant have wrongly availed credit, the penalty imposed is maintainable. He placed reliance on the following judgments: (i) Union of India Vs. Ind-Seift Laboratories Ltd. 2012 (25) S.T.R. 184 (S.C.) (ii) Chemspec Chemicals Pvt. Ltd. Vs. Commi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....4 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 manufacturer or the provider of the output service and the provisions of Section 11A and 11AB of the Excise Act or Section 73 and 75 of the Finance Act, shall apply mutatis mutandis for effecting such recoveries". In view of the above Rule, the wordings are if the credit has wrongly been taken or utilize the interest is chargeable therefore even though the credit was not utilized only on cenvat taken, the interest is chargeable. The Hon'ble Supreme Court in the case of Ind-Swift Laboratories Ltd. ....