2023 (5) TMI 296

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....uperintendent ( AR ) for the Respondent ORDER This appeal lies within the narrow compass of chargeability of interest under rule 14 of CENVAT Credit Rules , 2004 on the finding in order [ order-in-appeal no. NSK/EXCUS/000/170/2019-20 dated 29th November 2019 ] of Commissioner of Central GST & Central Excise (Appeals), Aurangabad that, notwithstanding the erasure of credit of Rs. 57,42,680 for t....

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....in appeal once again, the impugned order held that the findings of the original authority had travelled beyond the framework of the show cause notice and, consequently, set aside the recovery of credit. Nonetheless, the first appellate authority demanded interest on the said amount with the finding that '5.4 The Id. Commissioner in the earlier OIA has relied upon the case Law of Praveen Jain & C....

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....T Credit Rules, 2004.... However, the appellant had taken the credit on an earlier date i.e. on a date before making payment of the value of the input service, which resulted in wring availment of credit, which otherwise was available to them after making payment of the value of input service in the light of decision in the case of Praveen Jain & Co. Pvt. Ltd. referred to above, the appellant i....

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...., interest liability arises only upon credit taken and utilized wrongly. Furthermore, rule 3 and rule 4 of CENVAT Credit Rules, 2004 make it abundantly clear that credit is to be taken upon receipt of the invoice for the service procured. 6. In this particular instance, tax liability arose by deeming the recipient of the service to be the provider and having discharged the tax liability that accr....