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TMI Blog2016 (5) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... g of Cenvat credit precedes the utilisation. If Cenvat credit had been wrongly taken, that is an independent liability by itself irrespective of its utilisation which may have followed, as far as taxing statutes are concerned. The order of the Tribunal is therefore held to be not sustainable. - Decided in favour of appellant - Tax Case No. 24 of 2014 - - - Dated:- 1-12-2015 - Navin Sinha, CJ and P. Sam Koshy, J. Shri Maneesh Sharma, Advocate, for the Appellant. Shri Vinay Jain, Advocate, for the Respondent. JUDGMENT [Judgment per : Navin Sinha, C.J.]. - The present appeal arises from order dated 26-11-2013 dismissing Excise Appeal No. 1900-1902/2006-EX(SM) [2016 (331) E.L.T. 249 (Tribunal)] by the Customs, Excise and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al therefore committed manifest error of law in holding that if the Cenvat credit had been taken by making paper entries only and had not been utilised, there is no liability to pay interest. Reliance on 2012 (26) S.T.R. 204 (Karnataka) = 2012 (279) E.L.T. 209 (Kar.) [Commissioner of Central Excise and Service Tax, Bangalore v. Bill Forge Pvt. Ltd.] was erroneous. 5. Learned Counsel for the Respondent heavily relied upon Bill Forge Pvt. Ltd. (supra) to submit that the mere taking of Cenvat credit by paper entries without utilization of the same will not invite interest under Rule 14 after reversal. It was next submitted that the observations in Ind-Swift Laboratories Ltd. (supra) came to be made on its own facts in as much as Cenvat cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted in (1961) 2 SCR 189 wherein this Court at Para 10 has observed as follows :- 10. ... In interpreting a taxing statute, equitable considerations are entirely out of place. Nor can taxing statutes be interpreted on any presumptions or assumptions. The Court must look squarely at the words of the statutes and interpret them. It must interpret a taxing statute in the light of what is clearly expressed: it cannot imply anything which is not expressed; it cannot import provisions in the statutes so as to supply any assumed deficiency . 8. We shall now consider the ratio laid down in Ind-Swift Laboratories Ltd. (supra) observing that three conditions mentioned in Rule 14 with regard to taking of Cenvat credit, wrong utilisation of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest arises irrespective of its reversal before utilization. The conclusion of the Tribunal that the Cenvat credit having remained a paper entry only liability for interest would not arise in absence of utilization was thus clearly erroneous. 10. The fact that the liability would arise from wrong taking of Cenvat credit by making entries and that utilisation was the second step thereafter which was not required to be necessarily fulfilled for the liability of interest becomes apparent from the following passage :- 20. Therefore, the attempt of the High Court to read down the provision by way of substituting the word OR by an AND so as to give relief to the assessee is found to be erroneous. In that regard the submission of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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