2017 (5) TMI 229

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..... ted - assessee claims that the said rule is applicable in case of wrong availment of credit by reason of fraud, mis-statement, suppression of facts etc. In the present case no such ingredient is available therefore the interest which is chargeable in terms of Rule 57 I(5) is not applicable in the present case - Held that: - there is no proposal in the SCN for demand of interest. In absence of such proposal in the SCN ground cannot be made by way of Revenue's appeal - Respondent admittedly reversed the Cenvat credit. This is not the case of wrong availment of credit by reason of fraud, misstatement, suppression of facts etc. Therefore interest provision of Rule 57 I(5) is not applicable, hence, no interest is payable on the amount of modvat .....

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..... here in his order, the Commissioner has ordered for appropriation of the amount so confirmed and already paid by the notice. 2. Shri. Ajay Kumar, Ld. Joint Commissioner(A.R.) appearing on behalf of the Revenue reiterates the grounds of application. He submits that interest was not confirmed by the adjudicating authority in the order-in-Original which was chargeable in terms of Rule 571(5) of erstwhile Central Excise Rules, 1944 therefore order may be corrected to the extent of findings on the above issues. 3. On the other hand, Shri. Prasad Paranjape, Ld. Counsel for the respondent submits that the Ld. Commissioner in the impugned order clearly confirmed the reversal of modvat amount of ₹ 1,39,418/- therefore there is no need t .....

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..... se cases where the modvat credit is availed by fraud, collusion, mis-statement, suppression of facts etc. In the present case the demand of ₹ 1,39,418/- is only towards reversal of amount in terms of Rule 57F(4) wherein if the input sent for job work is not returned within the 60 days assessee is required to reverse cenvat credit attributed to the input sent for job work. Respondent admittedly reversed the Cenvat credit. This is not the case of wrong availment of credit by reason of fraud, misstatement, suppression of facts etc. Therefore interest provision of Rule 57 I(5) is not applicable, hence, no interest is payable on the amount of modvat reversed. ROM application of the Revenue is disposed of in the above terms. (Pronounced .....

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