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TMI Blog2008 (4) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... on that interest is demandable only if the amount of credit taken wrongly had been utilized, is acceptable – since wrongly taken credit was not utilized and was reversed before issue of SCN, interest and penalty are not imposable X X X X Extracts X X X X X X X X Extracts X X X X ..... Credit Rules, 2004 (CCR), any Cenvat credit taken or utilized wrongly can be recovered along with interest. After due legal process the Commissioner confirmed demand of interest to the tune of above Rs. 2,20,363/ in terms of the above provision for the period it remained in the accounts of the appellant. A penalty of Rs. 5000/- was also imposed on KIPL under Rule 15(3) of CCR in the impugned orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant. A few of them are discussed below : (a) Bidhata Industires Pvt. Ltd. v. CCE [2007 (220) E.L.T. 919 (T) = 2007 (83) RLT (189) (Cestat-Mum)] It was held that Sec. 11AB related to short-payment/non-payment determined under Sec. 11A. This occurred on wrong utilization of credit. The Tribunal relied on the ratio of judgment of Rajasthan High Court in Lucid Colloids Ltd v. UOI [2006 (200) EL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt dismissed the department's appeal against the above judgment. (d) Sri Chamundeswari Sugars Ltd v. CCE [2007(217) E.L.T. 65 (Tri-Bang)] As the irregular credit remained unutilized and reversed, the appellant was not liable to pay interest or penalty. 3. Ld. SDR relies on the Rule 14 of CCR which provides for collection of interest in cases where credit is taken or utilized wrongly. He reiter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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