9911796707
TMI Blog2014 (9) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... ,47,27,205/- during January, 2007 to March, 2010. Again during 2011-12 they availed irregular Cenvat credit of Rs. 4,26,806/-. The said irregular credit taken was reversed by the appellant on being pointed out by the audit. However, the appellant did not discharge any interest liability on such irregular availment of Cenvat credit. Therefore, they were directed by the jurisdictional Central Excise authorities to pay interest on the Cenvat credit wrongly taken from the date of taking of the credit till the date of reversal vide orders dated 28-8-2012 and 29-8-2012 under the provisions of Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11AA of the Central Excise Act, 1944. Aggrieved of the same the appellant preferred an appeal bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay interest also would not arise. 4. The Additional Commissioner (AR) appearing for the Revenue, on the other hand, submits that the Hon'ble Apex Court in the case of Ind-Swift Laboratories Ltd. (supra) held that interest liability would arise even if Cenvat credit is taken though not utilised in terms of the provisions of Rule 14 of the Cenvat Credit Rules, 2004 and, therefore, the ratio of the said decision would prevail over the decision of the Karnataka High Court. He further submits that this Tribunal, in the case of Dr. Reddy's Laboratories Ltd. (Final Order No. 25036/2013, dated 8-2-2013) [2013 (293) E.L.T. 81 (Tri.-Bang.)] had considered the decision of the Hon'ble Karnataka High Court in the Bill Forge Pvt. Ltd. case (supra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r that where the Cenvat credit is taken or utilised or erroneously refunded, the same along with interest shall be recovered from the manufacturer or the provider of the output services and the provisions of Sections 11A and 11AB shall apply mutatis mutandis for effecting such recoveries. Recovery of interest is under Rule 14. Only the mode of recovery is as provided for under Section 11AB of the Central Excise Act. The Hon'ble Apex Court in the Ind-Swift Laboratories Ltd. case (supra) examined the question whether interest would be liable to be paid even when the Cenvat credit has been taken wrongly but not utilised. The Hon'ble Apex Court noted that since the rule covers both the situations i.e. Cenvat credit taken or utilised wrongly and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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