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TMI Blog2010 (12) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... l under Section 35G of the Central Excise Act, 1944 (the Act), the appellant-Commissioner of Central Excise Customs, Vadodara-II has challenged order dated 27th July, 2009 [2009 (248) E.L.T. 350 (Tri. - Ahmd)] made by the Customs, Excise and Service Tax Appellate Tribunal (the Tribunal) by proposing the following question :- Whether, in the facts and circumstances of the case, CESTAT is justified in holding that interest is not required to be paid when there is express provision in Rule 14 of the Cenvat Credit Rules, 2004, to the effect the interest is required to be paid in instances where cenvat credit has been taken wrongly? 2. The respondent assessee is engaged in the manufacture of Polybags/flat films falling under Chapter 39 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the wrongly taken credit was not utilised or that such credit was reversed voluntarily or that there was no mala fide intent on the part of the assessee, so as to absolve it from the responsibility of paying interest. It was urged that the intention of legislature behind enacting such a provision is to strictly discourage the act of not only wrongly utilising the credit but of wrongly taking credit as well. It was submitted that the Tribunal has failed to appreciate that there is no scope of ambiguity in the text of Rule 14 of the Rules, and on a literal interpretation, it is apparent that in both the cases, that is, whether the credit is wrongly taken or utilized, the department is required to effect the recovery of cenvat credit alo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w that when credit is not utilised, the liability to pay interest does not arise. The Tribunal, in the impugned order, placed reliance upon various decisions of different High Courts and held that there was no infirmity in the view adopted by the Commissioner (Appeals). 6. In the light of the undisputed facts of the case, viz., the assessee had wrongly availed of cenvat credit, which came to be reversed from the cenvat credit account before utilisation, the short issue that arises for consideration is as to whether an assessee would become liable to pay interest under Rule 14 of the Rules when it has reversed the cenvat credit wrongly taken by it before utilizing the same. 7. In this regard it may be germane to refer to the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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