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2013 (8) TMI 768 - CESTAT BANGALORELiability to Pay Interest - Excess Credit - Reversal of Credit - Whether the assesse was liable to pay interest in terms of Rule 14 of the CENVAT Credit Rules, 2004 - Held that:- Relying upon UOI vs. Ind-Swift Laboratories Ltd. [2011 (2) TMI 6 - Supreme Court] - The respondent was liable to pay interest on the amount of CENVAT credit for the period from the date of its irregular availment to the date of its reversal - the period being covered by Rule 14 pre-amendment - A statutory provision is generally read down in order to save the said provision from being declared unconstitutional or illegal - Rule 14 specifically provides that where CENVAT credit has been taken or utilized wrongly or has been erroneously refunded, the same along with interest would be recovered from the manufacturer or the provider of the output service - Decided in favor of Revenue. Whether the respondent was entitled to take CENVAT credit on certain invoices issued by a registered depot of the manufacturer of inputs - Held that:- The assesse took CENVAT credit of the duty indicated in the depot invoices - the availment of the CENVAT credit by the assesse cannot be questioned - The case of the revenue was that there was no evidence of the amounts of duty shown in the depot invoices having been paid by the manufacturer – If the department had doubts regarding the amounts of duty paid by the manufacturer, appropriate proceedings should have been taken at their end - Any short-payment of duty by the manufacturer could have been taken care of through such proceedings - CENVAT credit was taken on valid documents and the inputs in respect of which such credit was taken were duly used in, or in relation to, the manufacture of final products - Therefore there was no reason to deny the credit to the assesse – Decided against Revenue.
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