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2016 (5) TMI 381 - CHHATTISGARH HIGH COURT
Liability for payment of interest - Rule 14 of the Cenvat Credit Rules, 2004 - Cenvat credit taken but reversed before utilization - Appellant submitted that the Tribunal committed manifest error of law in holding that if the Cenvat credit had been taken by making paper entries only and had not been utilised, there is no liability to pay interest. Held that:- the fact that the liability would arise from wrong taking of Cenvat credit by making entries and that utilisation was the second step thereafter which was not required to be necessarily fulfilled for the liability of interest. The taking of Cenvat credit precedes the utilisation. If Cenvat credit had been wrongly taken, that is an independent liability by itself irrespective of its utilisation which may have followed, as far as taxing statutes are concerned. The order of the Tribunal is therefore held to be not sustainable. - Decided in favour of appellant