2010 (8) TMI 403

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..... benefit - In an analogous situation if the assessee-manufacturer maintains a PLA account, the balance available in the said account does not earn interest for them - The CENVAT credit ‘taken or utilised’ should be read as CENVAT credit “taken and utilised” for the purpose of demand of interest - The appeal is allowed with consequential relief as per law - E/279/2010 - 914/2010 - Dated:- 18-8 .....

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..... the period Apr., 07 to 30-9-2007, they have taken inadvertently excess credit and on their own detected later on and reversed the excess taken credit. There is no dispute on reversal of the credit wrongly taken by them. Show-cause notice dated 7-10-2008 was issued proposing recovery of interest of Rs. 10,614/- and the original authority vide order dated 3-9-2009 dropped the proceedings after takin .....

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..... on the following decisions :- (i) Bhansali Engineering Polymers Ltd. v. Commissioner of Central Excise, Jaipur [2010 (254) E.L.T. 114 (Tri.-Del.)]. (ii) Commissioner of Central Excise, Chennai v. Premier Mills Ltd. [2008 (231) E.L.T. 105 (Tri.-Chennai)]. (iii) Commissioner of Central Excise, Ludhiana v. Sangrur Agro Ltd. [2010 (254) E.L.T. 25 (P H). (iv) Commissioner of Centr .....

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..... e 14 of the CENVAT Credit Rules, 2004 read as under :- Recovery of CENVAT credit wrongly taken or erroneously refunded. - Where the CENVAT credit has been taken or utilised wrongly or has been erroneously refunded, the same along with interest shall be recovered from the manufacturer or the provider of the output service and the provisions of sections 11A and 11AB of the Excise Act or sections .....

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..... is having sufficient balance in their CENVAT credit account and the mistake has been detected by the assessee themselves. Therefore, I hold that no interest is payable. 7. In view of the above, order of the Commissioner (Appeals) is set aside and the order of the original authority is restored. 8. The appeal is allowed with consequential relief as per law. (Dictated and pronounced in open co .....

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