2013 (8) TMI 159

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..... - Decided in favour of assessee.
Mr. M.V. Ravindran, J. For the Appellant: Sh. Dhaval Shah (Adv.) For the Respondent: Sh. K.N. Joshi (A.R.) JUDGEMENT Per :Mr. M.V. Ravindran; This appeal is directed against order in appeal No.Commr.(A)/372/VDR-II/2011, dt. 11.10.11. 2. Filtering out the unnecessary details, I find that the challenge in this appeal is for the imposition of interest of Rs.65,171/- under Rule 14 of the Cenvat Credit Rules, 2004 and penalty of Rs.2000/- under Rule 27 of the Central Excise Rules, 2002. Both the lower authorities have demanded interest from the appellants on the ground that the appellant had availed cenvat credit wrongly of the service tax paid by them on the commission paid to the agents who are situate .....

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..... lant now is burdened with the interest for no reason. 4. Ld. D.R. on the other hand would submit that it is very clear that the appellant was aware that the credit taken by them was wrong as they themselves have reversed the cenvat credit on 28.02.06. It is his submission that the provisions of Rule 14 specifically talk about reversal of cenvat credit taken or utilised wrongly and in this case, the action of the assessee mis-indicated that he has taken the credit wrongly. 5. On careful consideration of the submissions made by both sides and perused the records, I find that the issue involved in this case is regarding the interest liability on the appellant in availing cenvat credit wrongly and penalty. 6. It is undisputed that the appell .....

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..... rest does not arise. I also find that the appellant has been vigilant in as much as before sanctioning of the refund he has reversed the cenvat credit on his own. In the facts and circumstances of this case as mentioned hereinabove, I find that the demand of interest of Rs.65,171/- needs to be set aside and I do so. 8. At this juncture, I find that the penalty imposed by the adjudicating authority is in respect of the violations made by the appellants on two grounds. Since I have allowed the appeal filed by the appellant in respect of the cenvat credit availed by him of the service tax paid on the commission to the foreign agents but they are disputing the liability in respect of the other part. On the other part i.e. wrong availment of th .....

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