9911796707
TMI Blog2009 (9) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... l of Cenvat credit. X X X X Extracts X X X X X X X X Extracts X X X X ..... cause notices were adjudicated by the Assistant Commissioner vide order-in-original No. 1-2/AC/J-II/ST/2008 dated 01/7/08 by which, beside confirming the demand of interest, the Assistant Commissioner also confirmed the Cenvat credit demand of Rs. 91,000/-. The amount of credit which had been utilized and also imposed penalty of same amount under Section 78. The Assistant Commissioner also imposed penalty of Rs. 5,000/- on the Respondent under Section 77. On appeal against the Assistant Commissioner s order, the CCE (Appeals) vide the impugned order-in-appeal No. 861/CE/JAL/2008 dated 22/12/2008, however, set aside the entire demand and penalty. The interest demand was set aside relying upon Hon'ble Punjab & Haryana High Court judgment in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sity for the Assistant Commissioner to demand the same. (2) As regards, the interest on Cenvat credit, he pleaded that the respondent are liable to pay interest only on the amount of Rs. 91,000/- which has been utilized towards payment of duty and in respect of the balance amount which was lying unutilized, they are not liable to pay any interest and in this regard he relies upon Hon'ble Punjab & Haryana High Court judgment in the case of CCE, Delhi III vs. Maruti Udyog Limited (supra),wherein Hon'ble High Court has held that the assessee are not liable to pay interest as the credit was taken as entry in the Modvat record and had not been utilized. This judgment of Hon'ble Punjab & Haryana High Court has been upheld by the Hon'ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been utilized more so, when the same had not demanded in the show cause notice. In any case, penalty under Section 78 is not imposable for wrong availment of Cenvat credit. 3.2 As regards the interest on Cenvat credit, in view of Hon'ble Punjab & Haryana High Court judgment in the case of CCE, Delhi III vs. Maruti Udyog Limited (supra), wherein the Hon ble High Court has held that when inadmissible Cenvat credit was taken but not utilized and subsequently the assessee reversed the same, the assessee was not liable to pay any interest, no interest would be payable by the respondent on the amount of unutilized credit. I find that this judgment of Hon ble Punjab & Haryana High Court has been upheld by the Hon'ble Supreme Court also in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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