2012 (5) TMI 270 - AT - Central Excise

Cenvat credit stay - demand of interest - wrongful credit - Appellant availed the credit in respect of the capital goods which were sent to job-worker for re-conditioning or modification Held that - Appellants had not reversed the credit and the demand is in respect of interest on such credit, as per provisions of Rule 14 of CENVAT Credit Rules if the credit has been taken wrongly the manufacturer is liable for interest. The Appellants only contested the demand of interest on the ground that the same was not utilized, no merit in the contentions of the Appellants hence the Appeal is dismissed. Stay Petition is also dismissed

Summary

The Appellate Tribunal CESTAT, Kolkata dismissed the appeal against the demand of interest on wrongful credit for capital goods not received back within 180 days as per CENVAT Credit Rules. The decision was based on the ruling of the Hon'ble Supreme Court in the case of Union of India v. Ind-Swift Laboratories Ltd. 2011. The appeal and stay petition were both dismissed.