2019 (2) TMI 1556

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....p Sharan, AR For the Respondent ORDER Per: S.S GARG The present appeal is directed against the impugned order dated 23.10.2018 passed by the Commissioner (A) whereby the Commissioner (A) has rejected the appeal of the appellant. 2. Briefly the facts of the present case are that the appellants are engaged in the manufacture of sugar and molasses falling under Chapter 17 of CETA, 1985. D....

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....ner confirmed the demand of irregular CENVAT credit of Rs. 1,88,482/- and Service Tax of Rs. 9,910/- and also appropriated the already paid CENVAT credit of Rs. 1,88,482/- and Service Tax of Rs. 9,910/- along with interest of Rs. 1500/- and confirmed the interest of irregular CENVAT credit of Rs. 1,88,482/- and imposed penalty of Rs. 1,88,482/- and Rs. 9,910/- under Section 78 of the Finance Act. ....

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....nd therefore, the demand of interest and penalty on the appellant is not sustainable in law. He further submitted that this issue is no more res integra and has been settled by various decisions wherein it has been consistently held that when credit is not utilized from the date of its availment till the date of its reversal, no interest and penalty is payable. For this submission, he relied upon ....

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....us decisions relied upon by the appellant cited supra. Further, I find that the Hon'ble Karnataka High Court in the case of Vilax Industries Fabric (supra) has upheld the decision of the Tribunal and dismissed the appeal of the Revenue by holding that if the CENVAT credit is reversed without utilization then no interest and penalty is payable. Further, I find that imposition of penalty of Rs. 9,91....