2018 (10) TMI 1667 - HC - Central Excise

Waiver of Interest - Whether on the facts and in the circumstances of the case and in law was the Tribunal justified in holding that the credit is wrongly taken then mere non-utilitisation would not lead to waiver of interest? - HELD THAT - Hon'ble Madras High Court The Commissioner of Central Excise, Madurai V/s. M/s. Strategic Engineering (P) Ltd. 2014 (11) TMI 89 - MADRAS HIGH COURT has held that in the absence of utilisation of the cenvat credit in view of the subsequent amendment to Rule 14 of Cenvat Credit Rules, 2004, no interest can be levied. This is in view of the words 'taken or utilised' being substituted in the above Rule by the words 'taken and utilised' being clarificatory and applies to period prior to the amendment. Thus, this issue requires consideration. Appeal allowed by way of remand.

Summary

The Bombay High Court admitted the case on the question of whether non-utilization of credit leads to waiver of interest. The Tribunal relied on a Supreme Court decision but the appellant cited a Madras High Court decision to argue that interest cannot be levied if credit is not utilized due to a rule amendment. The issue requires further consideration.