2021 (12) TMI 428

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....cted in March, 2010, it was pointed out that they have taken excess credit irregularly on the capital goods, immediately thereafter the appellant reversed credit on 31.3.2010 but no interest was paid. Thereafter, several letters were written for payment of interest but the appellant did not pay interest. In that circumstance, a show cause notice was issued to the appellant on 10.12.2012 to demand interest by invoking extended period of limitation and the matter was adjudicated and confirmed the demand of interest and penalty is also impose. Against the said order, the appellant is before me. 3. Ld.Counsel for the appellant submits that although the credit was taken but the same was not utilized and remained unutilized. The credit was rev....

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....t on 10.12.2012 by invoking the extended period of limitation. 8. After hearing the appellant, the sole issue arise is whether the interest is payable by the appellant on reversal of credit which was taken but not utilized. 9. The Ld.AR relied on decision of Hon'ble Supreme Court in the case of Ind-Swift Laboratories (supra) to say that they are liable to pay interest. That issue was examined by the Hon'ble Karnataka High Court in the case of Bill Forge Pvt.Ltd.-2012 (279) ELT 209 (Kar.) in which case the Hon'ble High Court has examined the issue and held that although the credit taken but the same remained unutilized, in that circumstance, no interest is payable. But the said issue has been considered in the case of Sundaram Fastener....