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2013 (3) TMI 86 - AT - Central ExciseDemand of interest u/r 14 of CCR 2004 r.w.s. 11AB of the Central Excise Act - assessee contested that CENVAT credit was merely taken by making an entry in the CENVAT account and reversed at a later point of time by making a debit entry before issuing SCN thus there would be no question of interest liability - Held that:- There is only one ruling that is applicable to the instant case and the same is the one handed down by the apex court after interpreting the provisions of Rule 14 in Ind-Swift Laboratories case [2011 (2) TMI 6 - SUPREME COURT]. The ruling is to the effect that the word or appearing between the words taken and utilized cannot be read as "and" by way of reading it down as has been done by the High Court. The effect of this ruling is unambiguously clear. Where an amount of inadmissible CENVAT credit was taken by a manufacturer of excisable products or a provider of output service but later on reversed, he has to pay interest under Rule 14 for the period from the date of taking of credit to the date of its reversal, whether or not the credit was utilized. This is the clear result of the interpretation given by the apex court to the provisions of Rule 14. It is binding on this Tribunal under Article 141 of the Constitution of India. Thus the short question (whether the appellant is liable to pay interest under Rule 14 of the CCR 2004 on the amounts of CENVAT credit in question) has to be settled in favour of the Revenue.
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