9911796707
TMI Blog2018 (3) TMI 1244X X X X Extracts X X X X X X X X Extracts X X X X ..... est - appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 50088 of 2014 - FINAL ORDER NO. 50690 /2018 - Dated:- 2-2-2018 - Mr. Justice (Dr.) Satish Chandra, President And Mr. V. Padmanabhan, Member (Technical) Shri Rupendra Singh, Advocate for the Appellants Shri Sanjay Jain, AR for the Respondent Per: V. Padmanabhan : The present appeal is filed against Order in original No. 36/2013 dated 18.9.2013. The appellant is engaged in the manufacture of woven fabrics of cotton and other textile fabrics. They were availing Cenvat credit facility under the Cenvat Credit Rules, 2004. During the period 2006-07 to 2007-08, the department noticed that the appellant had availed Cenvat credit amounting to ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Union of India vs. M/s. Ind-Swift Laboratories Ltd. [2011 (265) ELT 3 (SC)] , in which the Hon ble Supreme Court has held that the interest is liable to be paid even if such credit is reversed without utilization. But we find that Hon ble High Court of Karnataka in the case of Bill Forge Ltd. (supra) has considered the issue in the light of observations of Apex Court in M/s. Ind-Swift Laboratories (supra) and has observed as under: 22. In the instant case, the facts are not in dispute. The assessee had availed wrongly the Cenvat credit on capital goods. Before the credit was taken or utilized, the mistake was brought to its notice. The assessee accepted the mistake and immediately reversed the entry. Thus the assessee did no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he credit, in other words by taking such credit, if he had not paid the duty which is legally due to the Government, the Government would have sustained loss to that extent. Then the liability to pay interest from the date the amount became due arises under Section 11AB, in order to compensate the Government which was deprived of the duty on the date it became due. Without the liability to pay duty, the liability to pay interest would not arise. The liability to pay interest would arise only when the duty is not paid on the due date. If duty is not payable, the liability to pay interest would not arise. 5. By following the decisions of Hon ble Apex Court as well as other judicial forum cited by the appellant, we find no justification ..... X X X X Extracts X X X X X X X X Extracts X X X X
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