TMI Blog2010 (4) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... the credit amount if the entry is reversed it amounts to not taking credit - Once the credit is reversed before its utilization in the Cenvat account it does not amount to taking of credit - Thus, the provisions of Rule 14 of Cenvat Credit Rules and Section 11AB of the Act are not attracted and neither the penalty nor the interest is chargeable. - 84 of 2010 - - - Dated:- 27-4-2010 - Rajes Kumar and Pankaj Mithal, JJ. REPRESENTED BY : Shri S.P. Kesarwani, Additional Chief Standing Counsel, for the Appellant. [Order per : Rajes Kumar, J.]. - This is an appeal under Section 35-G of the Central Excise Act, 1944 (hereinafter referred to as the Act ) arising from the order of the Tribunal dated 4-8-2009 in Central Excise Apeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,360/-. The Assessee supplied the printed sheets to their sister unit, who initially availed credit of the excess duty paid. Subsequently, the sister unit reversed the excess duty paid by the Assessee on 31-1-2005 in their Cenvat account at the instance of their jurisdictional officer. The Assessee took suo motu credit of Rs. 9,31,360/- paid in excess in their Cenvat account, on 25-5-2005. A show cause notice dated 13-2-2006 was issued on the ground that Cenvat credit of Rs. 9,31,360/- has been wrongly taken and accordingly proposed to demand the Cenvat credit of Rs. 9,31,360/- along with interest and penalty. The adjudicating authority has confirmed the demand of entire amount of duty along with interest and also imposed penalty of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. SKF India Ltd., reported in JT 2009 (9) SC 438 = 2009 (239) E.L.T. 385 (S.C.) which has been followed in the case of Commissioner of Central Excise v. M/s. International Auto Limited, reported in JT 2010 (1) SC 294 = 2010 (250) E.L.T. 3 (S.C.). He further submitted that reduction of penalty to Rs. 10,000/- is also not justified. 6. We have gone through the impugned order and considered the submissions made by the learned Additional Chief Standing Counsel. 7. Rule 14 of the Cenvat Credit Rules, 2004 reads as follows : Rule 14. Recovery of CENVAT credit wrongly taken or erroneously refunded. - Where the CENVAT credit has been taken or utilized wrongly or has been erroneously refunded, the same along with interest shall be recover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n or direction as the case may be, no interest shall be payable and in other cases the interest shall be payable on the whole of the amount, including the amount already paid. (2) The provisions of sub-section (1) shall not apply to cases where the duty had become payable or ought to have been paid before the date on which the Finance Bill, 2001 receives the assent of the President. Explanation 1. - Where the duty determined to be payable is reduced by the Commissioner (Appeals), the Appellate Tribunal, National Tax Tribunal or, as the case may be, the Court, the interest shall be payable on such reduced amount of duty. Explanation 2. - Where the duty determined to be payable is increased or further increased by the Commissioner (Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of duty or non-payment of duty or late payment of duty, on account of wrong availment of credit. 9. It is undisputed fact that the Assessee was entitled for the Cenvat Credit under the Cenvat Credit Rules. It is also not disputed that during the period 28-2-2004 to 18-3-2004 the Assessee had paid Central Excise Duty in excess of Rs. 9,31,360/-. The purchasers have reversed the Cenvat Credit in their Cenvat account of Rs. 9,31,360/-, therefore, the Assessee was entitled for the refund of excess amount paid in accordance to the provisions of the Act. Instead of claiming refund separately, the Assessee has taken Cenvat Credit of the said amount in the Cenvat account. Such amount credited in the Cenvat account was available for the pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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