2018 (12) TMI 163

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....nt of both sides the same is taken up for disposal. 2. The only dispute in this appeal is regarding the demand of Rs. 47,544/-, demanded on account of interest in terms of Rule 14 of Cenvat Credit Rules, 2004 read with Section 11AA of Central Excise Act, 1944. 4. Ld. Representative appearing on behalf of the appellant draws the attention of the Bench to Exhibit-E of the Appeal Paper Book, which is the written submission filed before the Commissioner (Appeals), which shows that the cenvat credit availed but not utilized and reversed before utilizations and further, there was excess cenvat credit available on the date of cenvat credit availed. According to the ld. Representative, the liability of interest, if any, should be to the tune ....

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....isions by the Hon'ble High Court of Madras and also decision of the Hon'ble Tribunal. He also counters the Citations made by the Learned Counsel. He submits the Apex Court's decision in Ind-Swift Laboratories Ltd (supra) is in the favour of Revenue stand. He also cited the decision of Hon'ble Madras High Court in the case of CCE, Chennai v. Delphi TVS Diesel Systems Ltd - 2015 (322) E.L.T. 279 (Mad.) and decision of this Hon'ble Tribunal in Force Motors Ltd v. CCE., Pune - 2015-TIOL-1833- CESTAT-Mum = 2015 (329) E.L.T. 543 (Tribunal). The learned Authorised Representative strongly argued that if the audit had not pointed out the wrong availment of cenvat credit, it would have resulted in short levy and by simple filing returns by itself wil....

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...., is recoverable under Rule 14 of the Rules. However, in the light of the aforesaid decision of the Supreme Court, when the entry has been reversed before utilization, the same amounts to not taking credit. In the circumstances, where CENVAT credit is taken wrongly, but reversed before the same is utilized, it amounts to not taking credit. Accordingly, when no credit is taken, the provisions of Rule 14 of the Rules would not be attracted. The view adopted by the Tribunal as well as the authorities below is, therefore, in consonance with the view taken by the Supreme Court in the above referred decision." 6. We find that in this case the appellant had reversed the credit as soon as it was pointed out that they had wrongly availed the same....