2016 (4) TMI 1174 - AT - Central Excise

Liability of interest on already reversed CENVAT credit - imposition of penalty u/r 15A of CENVAT Credit Rules 2004 in respect of irregularly availed CENVAT Credit - Held that - considering the larger bench decision in appellant s own case, J.K Tyre Industries Ltd 2016 (11) TMI 911 - CESTAT BANGALORE there cannot be any interest liability on irregularly availed CENVAT credit which had been reversed already by the appellant. When there is no liability of interest, in this matter penalty imposed of ₹ 2000/- is not justified and is hereby dropped - appeal allowed - decided in favor of appellant.

Summary

The judgment concerns liability of interest on reversed CENVAT credit and penalty under Rule 15A of CENVAT Credit Rules 2004. Appellant argued interest liability not applicable based on larger bench decision. Larger bench decision stated interest liability not applicable outside Karnataka. Tribunal held no interest liability on reversed credit, dropping penalty of Rs. 2000. Appeal decided accordingly.