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TMI Blog2023 (6) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... eals), whereby the levy of interest has been confirmed under Rule 14 of the Cenvat Credit Rules, 2004 ("CCR") read with Section 11AB of the Central Excise Act, 1944 on the amount of Cenvat credit taken inadvertently but not utilized. 2. Briefly stated, the facts of the case are that due to a clerical error, the Appellant had inadvertently taken CENVAT Credit on duty paid documents twice. On realising its mistake, the Appellant suomoto reversed such credit taken by it. The said facts are not in dispute. The Ld. Adjudicating authority observed that although the Appellant has reversed the excess credit taken, it had utilized the same and thus, failed to pay appropriate interest chargeable thereon. The said matters travelled upto the High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... JK Tyre & Industries Ltd. v. Assistant Commissioner 2016 (340) ELT 193 (Tri.-LB) c) SAIL v. CGST & CE, Bolpur 2019 (9) TMI 886 - CESTAT Kolkata. d) Philips Carbon Black Ltd. v. Commissioner 2017 (6) TMI 628 - CESTAT Kolkata e) Electrosteel Castings Ltd. v. Commissioner 2018 (7) TMI 1939 - CESTAT Kolkata f) Anmol Stainless Pvt. Ltd. v. CGST & Excise, Howrah 2020 (2) TMI 1491 - CESTAT Kolkata 4. The Ld. Counsels also submitted that Rule 14 of the CCR was amended vide Notification no. 18/2012 - CE (NT) dated 17.03.2012 and the entry was substituted to "taken and utilized wrongly". The Ld. Counsels submitted that it is a settled position of law that substitution leads to replacement of the old provision by a new provision. Hence, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly a book entry. It might be utilised later for payment of excise duty on the excisable product. It is entitled to use the credit at any time thereafter when making payment of excise duty on the excisable product. It matures when the excisable product is received from the factory and the stage for payment of excise duty is reached. Actually, the credit is taken, at the time of the removal of the excisable product. It is in the nature of a set off or an adjustment. The assessee uses the credit to make payment of excise duty on excisable product. Instead of paying excise duty, the cenvat credit is utilized, thereby it is adjusted or set off against the duty payable and a debit entry is made in the register. Therefore, this is a procedure whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the wrong entry in the account books. As he had taken credit in a sum of Rs. 11,691-00, a sum of Rs. 154-00 was the interest payable from the date the duty was payable, which they promptly paid. The claim of the Revenue was, though the assessee has not taken or utilized this Cenvat credit, because they admitted the mistake, the assessee is liable to pay interest from the date the entry was made in the register showing the availment of credit. According to the Revenue, once tax is paid on input or input service or service rendered and a corresponding entry is made in the account books of the assessee, it amounts to taking the benefit of Cenvat credit. Therefore interest is payable from that date, though, in fact by such entry the Revenue i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to pay interest as the credit was only taken as an entry in the Modvat record and was not in fact utilized. Against the decision, the Special leave to Appeal (Civil) No. CC3915/2007 filed by Revenue, was rejected by the Hon'ble Supreme Corut [2007 (214) E. L. T. A50 (S.C.)]. 9. Further, the Hon'ble Madras High Court in case of CCE Vs. M/s Strategic Engineering (P) Ltd. - 2014- TIOL-466-HC-MAD-CX considered that the Appellate Tribunal had come to a definite conclusion to the effect that the assessee had merely taken CENVAT credit facilities and before utilizing the same, it was reversed. Therefore, it was held that the assessee was not liable to pay interest and penalty. 10. I find that in a similar case of SAIL v. CGST & CE, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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