TaxTMI 
TaxTMI 
2018 (7) TMI 1369
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....was not admissible to it, immediately upon being informed during a visit of the official of the Revenue to the business place of the Respondent - Assessee. 3. The facts of the case and also the findings of the learned Tribunal in its Order dated 19/08/2016 are quoted below for ready reference:- "The present appeal is directed against the impugned order passed by the Commissioner (appeals) vide its order dated 18.02.2009 upholding the Order-in-Original and rejecting the appeal of the appellant. Briefly the facts of the present case are that the appellant is a proprietary concern of Shri AG Sridharan and is a SSI unit engaged in the manufacture of the Dipped nylon tyre cord fabric falling under Chapter 59021090 of CETA 1985. Appellant is availing cenvat credit of duty paid on inputs under the Cenvat Credit Rules 2002. During the period from May 2005 to December 2005 the appellant imported 5 consignments of nylon yarn which is the main material of the final product and got the consignment released on payment of basic customs duty, CVD, cess on textile and education cess. It is further stated that the officer of the firm who was looking after excise matter inadvertently and....
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....ertent mistake on the part of the person looking after the excise matters, appellant has wrongly taken the cenvat credit and on being pointed out by the audit, he reversed the same along with interest. He further submitted that the show-cause notice should not have been issued to the appellant in terms of the provisions of Section 11A (2B) of the Central Excise Act 1944. He also submitted that the appellant had reversed the credit before its utilization and wherever the credit had been utilized, the same was reversed along with interest and hence the question of demand of interest in respect of the credit reversed before utilization and imposition of penalty on the ground of suppression of facts does not arise. In support of his submissions he relied upon the following authorities: (i) JK Tyre & Industries Ltd. Vs. ACCE - 2016-TIOL-1781- CESTAT-BANG (ii) CCE,Madurai Vs. M/s. Strategic Engineering (P) Ltd. 2014-TIOL-466-HC- MAD CX-2014 (310) ELT 409 (Mad.) (iii) TNT (India) Pvt. Ltd. Vs. CCE & ST, Bangalore - 2016 (42) STR 285 (Tri.-Bang.) (iv) CCE & ST, LTU Bangalore V. Bill Forge Pvt. Ltd. - 2012(279) ELT 209 (Kar) (v) CCE, Bangalore-II....
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....place of the Assessee, the said entry was reversed by the Respondent Assessee, therefore the learned Tribunal was not justified in setting aside the concurrent finding of the Adjudicating Authority as well as the First Appellate Authority, imposing the interest and penalty on the Respondent Assessee. 5. He relied upon the following judgments in support of his submissions:- [1] Commissioner of Central Excise Vs. Illpea Paramount Pvt.Ltd. of Punjab and Haryana High Court MANU/PH/1040/ 2006; [2] Union of India Vs. Ind-Swift Laboratories Ltd. MANU/SC/0140/2011 6. The learned counsel appearing for the Respondent Assessee, however, supported the Order passed by the learned Tribunal. 7. Having heard the learned counsel appearing for the parties, we are of the considered opinion that no substantial question of law arises in the present case and the controversy involved in this appeal is squarely covered by the decision of the co-ordinate Bench of this Court in the case of Commissioner of Central Excise & Sales Tax, LTU, Bangalore Vs. Bill Forge Pvt.Ltd. 2012 (279) E.L.T. 209 (Kar). The relevant portion of which is quoted below for ready reference:- "R....
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....he 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 only on delayed payment of duty i.e., where only duty of excise has not been levied or paid or has been short levied or short paid or erroneously refunded, the person liable to pay duty, shall in addition to the duty is liable to pay interest. Section do not stipulate interest is payable from the date of book entry, showing entitlement of Cenvat credit. Interest cannot be claimed from the date of wrong availment of CENVAT credit and that the interest would be payable from the date CENVAT credit is taken or utilized wrongly. 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 taken credit in a sum of Rs, 11,691-00, a sum of Rs. 154-00 was....