TaxTMI 
TaxTMI 
2019 (10) TMI 1102
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....l goods at 100% of the duty paid whereas as per the Cenvat Credit Rules, capital goods credit can be taken only to the extent of 50% of the duty paid in the first year and the balance 50% has to be availed in the second year subject to the capital goods being available and put to use. The period involved in the Appeal is from years 2004-05 to years 2008-09. The said availement was noticed during the course of EA-2000 audit as communicated vide their reference dated 13.1.2010. Upon being pointed out by the audit, the Appellants, immediately reversed the Cenvat Credit alongwith interest under protest on 4.2.2010. Later it came to the notice of the Appellants that during the period in issue they had only availed the Cenvat Credit in their book....
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.... paid. Learned counsel further submits that as per Rule 14 of Cenvat Credit Rules, 2004, interest on late payment of Cenvat Credit is payable only when the Cenvat credit was wrongly taken and utilized by the assessee, whereas in the instant matter the Cenvat credit was availed by the appellants under bona fide belief and the same was not utilized by the appellants since during that period there was sufficient credit balance available in its books of accounts. He further submits that the learned Commissioner erred in relying upon the decision of the Hon'ble Supreme Court in the matter of Union of India vs. Ind-Swift Laboratories Ltd.; 2011(265) ELT 3 (SC) whereas the same has been distinguished by the Hon'ble High Court of Karnataka in the m....
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.... be payable on the amount paid. Learned counsel submits that Board's clarification dated 3.9.2009 can be applicable prospectively and not for the past period. He also submits that credit wrongly availed does not amount to short payment of duty since it is merely a book entry. Therefore when there is no short payment of duty, Section 11A won't get attracted. 4. There is no dispute that the recovery of the wrongly/mistakenly availed credit is governed by Rule 14 of CCR, 2004. The issue is whether the appellant is liable to pay interest for the mistakenly/irregularly availing Cenvat credit which they did not utilize? It is the specific case of the Appellant that the Cenvat credit was availed by the appellants under bona fide belief and the s....
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....take, since the assessee reversed the entry, it cannot be said that any benefit of such wrong entry was taken, and thus, the interest is not payable. The issue involved in the case of Ind-Swift Laboratories Ltd. (supra) is different from the facts of the present case, inasmuch as, the Cenvat credit was taken by the assessee on the strength of fake invoice and the credit was not reversed by the assessee but it was recovered by way of demanding duty. Since, in the present case, Cenvat credit before its utilization was reversed by the appellant, the said judgment of Hon'ble Supreme Court relied on by the ld. D.R. is not applicable to the facts of this case. In view of above, I am of the opinion that interest cannot be demanded from the appella....
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.... appeal was filed by Revenue, while dismissing the Revenue appeal held as under:- " xxx xxx xxx 8. Learned Advocate appearing for the respondent draws my attention to a latest decision of the Hon'ble High Court of Karnataka in the case of Commissioner of Central Excise and S.T., Bangalore v. Bill Forge Pvt. Ltd. - 2012 (26) S.T.R. 204 (Kar.) = 2012 (279) E.L.T. 209 (Kar.). The Supreme Court decision in the case of Ind-Swift Laboratories Ltd. was considered and it was held, that the interest would be payable from the date Cenvat credit is taken or utilized wrongly. By following the said decision of the Hon'ble Supreme Court, the Hon'ble Karnataka High Court, in an identical set of facts held that the assessee had not taken or utilized ....