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TMI Blog2019 (2) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant on their final product was required to be refunded to them or to be adjusted or neutralized against the demand of credit being made. As such, the entire situation is revenue neutral - demand set aside. Demand of interest and penalty - Held that:- here is no dispute about the fact that the wrongly availed credit was not being used by the assessee inasmuch as there was sufficient balance in their credit account at the time of reversal of the excess availed credit. The Hon’ble Karnataka High Court in the above-referred judgement of Bill Forge (P) Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT] has held that in case the excess and wrongly availed Cenvat credit does not stand utilized, and is subsequently reversed, the same would not ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount equivalent to 6% of value of all exempted goods in terms of the provisions of Rule 6(3) of Cenvat Credit Rules. The pipes classifiable under chapter 39 were being cleared by them on payment of duty by utilizing the Cenvat credit. 2. As per audit objection, it was observed that certain inputs like LDPE and LLDPE are being used exclusively by the appellant in the manufacture of exempted goods and as such they should not have availed any credit in respect of the same inasmuch as Cenvat Credit Rules, 2004 do not allow availing of credit of duty on the inputs exclusively used in the manufacture of exempted goods. As such an objection was raised to the effect that the appellants were not entitled to avail the Cenvat credit in respect of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of ₹ 4,52,905.00 already deposited by the appellant. He also confirmed the interest in terms of Rule 14 of Central Excise Rules, 2004 and imposed penalty of identical amount upon the appellant. 4. The said order of the Additional Commissioner was appealed against by the Revenue as also by the assessee before Commissioner(Appeals). Revenue appealed the said order on the ground that Plain Lateral Pipes and Tubes were to be classified under chapter 84 in which case they would be exempted from payment of duty vide Entry No.242 of Notification No.12/2012-CE dated 17.03.2012, being used in agriculture and horticulture. In that scenario no Cenvat Credit would be available to the assessee. The assessee appealed against the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontended that the duty paid by them on the said pipes was much more than the credit availed by them. Their customers were also not availing the benefit of Cenvat credit of duty paid by the appellant. In such a scenario, it stands strongly contended that they were not benefited by availing the credit and paying duty on the final product. Revenue is silent about the duty paid by the appellant on the said Plain Lateral Pipes and Tubes. Admittedly the said duty stands paid by them by utilizing the credit, which gets reversed at the time of payment of duty. In such circumstances the further reversal of the credit cannot be sought by the Revenue. If the Revenue was of the view that the said Pipes and Tubes were also exempted, and the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taka High Court s decision in the case of C.C.E. v. Bill Forge (P) Ltd. [2012 (279) ELT 209 (Kar.)] as also many other decisions. We note that there is no dispute about the fact that the wrongly availed credit was not being used by the assessee inasmuch as there was sufficient balance in their credit account at the time of reversal of the excess availed credit. The Hon ble Karnataka High Court in the above-referred judgement of Bill Forge (P) Ltd. (supra) has held that in case the excess and wrongly availed Cenvat credit does not stand utilized, and is subsequently reversed, the same would not call for any interest liability. As such we find no reasons to uphold the confirmation of interest. Similarly in respect of the imposition of p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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