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TMI Blog2016 (3) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... stion whether interest would be liable to be paid even when the cenvat credit has been taken wrongly but not utilized and noted that since the Rule covers both the situations i.e. cenvat credit taken or utilized wrongly and the word “or” is disjunctive in nature, even if the credit has been availed wrongly, the liability pay interest would accrue. Therefore hold that the appellant is liable to discharge interest liability paid subsequently under protest to the respondent. - Decided against assessee. - Appeal No. E/992/10-Mum - A/85796/16/SMB - Dated:- 15-2-2016 - MR. S.S. GARG, MEMBER (JUDICIAL) For the Petitioner : Shri S. Narayanan, Advocate For the Respondent : Shri Sanjay Hasija, Superintendent (AR) ORDER This a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - under Section 11AB and appropriated the same against the confirmed interest under Section 11A(2B). Aggrieved by the same, the appellant has filed the present appeal. 3. The learned counsel for the appellant submitted that the appellant had taken the credit twice inadvertently without intention to evade against the same documents in the month of September 2008 and after detection of their mistake, reversed the same voluntarily in March 2009 and thereafter informed the Range Superintendent accordingly. It is his further contention that the appellant during the relevant period had sufficient credit balance in their accounts and they have produced the statement of their cenvat account during the period. Therefore, they have never utilized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the credit and therefore the question of recovery of any cenvat credit would not arise at all. On the other hand, he places reliance on the decision of the Honble High Court of Karnataka in the case of CCE, Bangalore vs. Bill Forge Pvt. Ltd. reported in 2012 (279) ELT 209 (Kar.), wherein it was held that if credit is taken and reversed without utilization for payment of excise duty, no interest is required to be paid under Rule 14 read with Section 11AB of the Central Excise Act, 1944. It is also argued that interest liability will accrue only when there is a duty demand confirmed under Section 11A of the Act. In the present case, inasmuch as there is no utilization of credit, the question of any recovery would not arise and consequently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs received. Accordingly he pleads that the appellant is liable to pay interest as held by various decisions of the Tribunal cited supra as well as the recent decision of the Hon ble Bombay High Court in the case of GL V India Pvt. Ltd. (supra). 5. I have heard the learned counsel for the parties and perused the records. 6. In the present case, the recovery of interest on the cenvat credit wrongly taken is made under the provisions of Rule 14 of the Cenvat Credit Rules, 2004. The said Rule as it stood at the relevant time reads as under:- 14. Recovery of Cenvat credit wrongly taken or erroneously refunded. - Where the Cenvat credit has been taken or utilized wrongly or has been erroneously refunded, the same along with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epted, the same would amount to permitting the word or between taken and utilized to be substituted by and . The Lordships therefore found that applying the principle of strict and liberal interpretation the same was not permissible. 13. In view of the clear pronouncement of law by the Apex Court, we find that the view taken by the learned Tribunal may be though correctly taken at that point of time, on the basis of the judgment of the Punjab Haryana High Court, would no longer be correct in view of the subsequent judgment of the Apex Court in the case of Union of India v. Ind-Swift Laboratories Ltd. reported in 2011 (265) E.L.T. 3 (S.C.). 15. In so far as the judgment of the Karnataka High Court is concerned, it appears ..... X X X X Extracts X X X X X X X X Extracts X X X X
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