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2013 (11) TMI 782 - AT - Central ExciseAccrual Date of Interest Liability - Whether liability of interest under Rule 14 of Cenvat Credit Rules, 2004 read with Section 11AB arises from the date of taking wrong credit in books of accounts or when such credit is taken (utilized) while clearing the finished products – The assessee has taken the input service credit on 12.01.2009 against an invoice - They again took the credit of the said amount against the same invoice on 16.01.2009 - They however, reversed the excess credit on 13.01.2009 i.e. after a period of about 11 months from the date of taking the wrong credit - Held that:-Following Union of India Vs. Ind-Swift Laboratories Ltd. [2011 (2) TMI 6 - Supreme Court] - The manufacturer of the provider of the output service becomes liable to pay interest along with the duty where CENVAT credit has been taken or utilized wrongly or has been erroneously refunded and the provision of Section 11AB would apply for effecting such recovery - The word ‘OR’ found in Rule 14 cannot be read as ‘AND’. The assessee’s contention that they did not utilize this credit towards payment of duty cannot be accepted when there were clearances of final products and duty has been debited from the credit account cannot be accepted - during the period, the liability to pay duty/service tax would have arisen any number of times, in fact every month – Interest on irregular credit would arise from the date on which credit was wrongly taken irrespective of the fact whether the credit was utilised or not - thus, the Appellant is liable to pay interest from date of taking the wrong credit – Decided against Assessee.
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