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TMI Blog2013 (12) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... hich was not due to them and for which the Appellant became entitled only at a subsequent date. Therefore, they are liable to pay the interest in terms of the provisions of Rule 14 of the Cenvat Credit Rules. As regards the contention of the Appellant that Tax has not been determined in accordance with the provisions of Section 11A(2), it is pertinent that the recovery of interest is for irregular availment of Cenvat credit which was not available to them, since they had not paid the Service Tax amount to the service provider. The Service Tax amount to service provider, was paid at a later date, the payment of which has never been contested or challenged at any stage - Appellant utilized the credit only after paying the Service Tax amount t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice Tax/Cess amount to the service provider. However, the interest was not paid. The Department issued a show cause notice for recovery of interest along with the proposal for penalty. The lower Adjudicating Authority confirmed the amount of interest. Aggrieved by the same, the Appellant challenged it before the Commissioner (Appeals). Learned Commissioner (Appeals) upheld the lower Adjudicating Authority s Order. 4. The contention of the Appellant is that Service Tax was paid to the service provider and after that, they became eligible for availing credit and accordingly, thereafter, they utilized the credit. The Department s allegation is that they had wrongly availed the Cenvat credit which was not due to them. Therefore, there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellant availed the Cenvat credit which was not due to them at the material time. The demand of interest is for the period from the date of irregular availment of Cenvat credit till the date of payment of Service Tax amount to the service provider in terms of Rule 4(7) of Cenvat Credit Rules. There is no dispute that the Appellant had retained the amount which was not due to them and for which the Appellant became entitled only at a subsequent date. Therefore, they are liable to pay the interest in terms of the provisions of Rule 14 of the Cenvat Credit Rules. As regards the contention of the Appellant that Tax has not been determined in accordance with the provisions of Section 11A(2), it is pertinent that the recovery of interest is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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