2009 (6) TMI 906 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT NEW DELHI issued a judgement in 2009 regarding an appeal filed against the payment of interest and penalty. The appellant had taken Cenvat Credit on waste cloth during a specific period and later reversed the credit after a show cause notice was issued. The Original Authority confirmed the demand of interest and imposed a penalty, which was upheld by the Commissioner (Appeals). The appellant argued that since they had not utilized the credit, the payment of interest was not justified. The Tribunal referred to a previous case and concluded that interest is not leviable when wrongly taken credit has not been utilized. As a result, the demand of interest and penalty were set aside, and the appeal was allowed with consequential relief. The order was dictated and pronounced in open court on 5-6-2009.