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2017 (12) TMI 149 - CESTAT MUMBAIInterest - CENVAT credit - trading activity - case of appellant is that though the credit was availed attributable to the trading activity, the same was lying unutilized therefore interest even for the period April, 2010 to March, 2012 is not recoverable - Held that: - issue is squarely covered by Hon’ble Supreme Court in case of Union of India Versus Ind-Swift Laboratories Ltd. [2011 (2) TMI 6 - Supreme Court] wherein it was held that as per the amended Rule 14 upto 31st March 2012 interest was chargeable on the wrong availement of credit for taking or utilizing the wrong availement of credit from 1-4-2012, the term Taken or utilized substitute with taken and utilized therefore prior to 1-4-2012, even if the Cenvat credit was not utilized but only taken wrongly interest is chargeable - interest for the period from April, 10 to March, 12 was rightly demanded. Penalty u/s 11AC - extended period of limitation - Held that: - appellant was very much knowing that they are manufacturing and clearing dutiable goods as well as doing trading activity which is neither chargeable to duty nor to service tax and despite this fact they availed credit on common input service. It is only on pointed out by the audit party they have reversed the amount there is clear suppression of facts on the part of the appellant. Extended period of demand is rightly invoked - Ingredients for invoking extended period under proviso to Section 11A(1) is pari materia to the ingredient provided for imposition of penalty under Section 11AC - penalty also confirmed. Appeal dismissed - decided against appellant.
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