2022 (2) TMI 792

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.... credit by the impugned order along with order for recovery of interest and imposition of penalty under Sections 77 & 78 is justified. 2. The brief facts of the case are as under:- a. BA Continuum Private Limited ('BACPL') was engaged in the business of providing wide range of information technology related services such as product support services, migration, infrastructure support etc. to their customers located outside India. The Appellant primarily rendered services in the nature of Business Auxiliary Services ('BAS') and 'Information Technology Software Services' ('ITSS') to the group entities located outside India. Accordingly, the Appellant claimed CENVAT credit of the input services based on the invoices issued by the in....

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....liaised with the Audit Authorities in relation to the audit proceedings. During the audit, on review of the revised ST-3 return, the Audit Authorities pointed out that the Appellant did not pay interest on availment of inadmissible CENVAT credit. In this context, the Audit Authorities issued a letter dated 18 February 2014 to the Appellant listing the discrepancies noticed during the EA 2000 audit. The Appellant filed a reply with the Audit Authorities on 7 March 2014 stating that the CENVAT credit had been availed inadvertently due to a technical fault in the accounting software. Further, the Appellant clarified that the inadmissible CENVAT credit was only availed and not utilized for payment of any output tax liability. f. Despit....

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....has been admittedly reversed suo moto in February 2011 under proper intimation given to Revenue. Admittedly such excess credit was never utilized. Further, CENVAT Credit reversed prior to its utilization amounts to CENVAT Credit never been taken, as held by the Hon'ble Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd. Vs. Commissioner of Central Excise, Nagpur - 1996 (81) ELT 3 (SC). Further, relied upon the amended provisions of Rule 14 of the CENVAT Credit Rules, 2004 which provides that when CENVAT Credit has been reversed without utilization, in that case there is no liability to pay interest. He further urges that as the assessee has already rectified the claim by reversing the CENVAT Credit under intimation to Revenue ....