2022 (12) TMI 365

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....4,662 at their Anode Factory in respect of the input services which were availed in relation to the PCD-II factory. On pointing out by the department the appellant reversed the Cenvat credit vide entry No 47 dated 27.07.2007 in the Cenvat credit account. After lapse of 3 years the appellant was issued the present show cause notice dated 06.05.2010 proposing to appropriate Cenvat credit of Rs 33,94,662/- already reversed and proposing to charge interest of Rs. 6,78,439/- under Rule 14 of Cenvat Credit Rules, 2004 read with section 11AB of the Central Excise Act, 1944 and proposing to impose penalty on the appellant under Rule 15 of Cenvat Credit Rules, 2004 read with section 11AC of the Central Excise Act, 1944. The Additional Commissioner o....

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....vs. Bombay Dyeing & Mfg. Co. Ltd. - 2007 (215) ELT 3 (SC) * Commissioner vs. Maruti Udyog Ltd. - 2007 (214) ELT 173 (P&H) * CCE vs. Bill Forge Pvt Ltd. -2012 (26) STR 204 (Kar.) * Escorts Ltd vs. CGST C.C & C.E. - Dehradun - 2018 (8) TMI 478 - Cestat New Delhi * Amco Batteries Ltd vs. CCE - 2003 (153 ) ELT 7 (SC) clarified in CCE vs. Mahindra & Mahindra - 2005 (179) ELT 21 (SC) * CCE vs. Narayan Polyplast - 2005 (179) ELT 20 (SC) * Punjab Tractors vs. CCE - 2005 (181) ELT 380 ( SC) * CCE vs. Narmada Chematur Pharmaceuticals :td - 2005 (179) ELT 276 (SC) * Commissioner vs. Shive Steel Re-rolling Mills - 2016 (337) ELT A094 (Bom.) * Union of India vs. Indian Ispat Works Pvt Ltd. - 2015 (322) ELT 647 (Chatt. HC) * Rashtriya....

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....e the CENVAT credit has been taken or utilized wrongly or has been erroneously refunded, the same along with interest shall be recovered from the manufacturer or the provider of the output service and the provisions of sections 11A and 11AB of the Excise Act or sections 73 and 75 of the Finance Act, shall apply mutatis mutandis for effecting such recoveries." From the plain reading of the above rule it is clear that the interest is chargeable in event of either wrongly availed credit or wrongly utilized. Therefore, even though the credit was not utilized but since the credit was wrongly availed the interest is unavoidably chargeable. This issue has been settled by the Hon'ble Supreme Court in the case of Ind-Swift Laboratories (Supra). The....