Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 839 - AT - Central ExciseIrregular availment of Cenvat credit - recovery of interest on the Cenvat credit availed wrongly - held that:- where the Cenvat credit is taken or utilised or erroneously refunded, the same along with interest shall be recovered from the manufacturer or the provider of the output services and the provisions of Sections 11A and 11AB shall apply mutatis mutandis for effecting such recoveries. Recovery of interest is under Rule 14. Only the mode of recovery is as provided for under Section 11AB of the Central Excise Act. There is no one to one correlation between taking of credit and its utilisation in the case of Cenvat credit as in the case of set-off. It is in view of this reason, this Tribunal in the case of Dr. Reddy’s Laboratories Ltd. (2013 (3) TMI 86 - CESTAT BANGALORE) had come to the conclusion that the decision of the Hon’ble High Court in the case of Bill Forge Pvt. Ltd. (2011 (4) TMI 969 - KARNATAKA HIGH COURT) is per incuriam. We are in agreement with the view taken by this Tribunal in the case of Dr. Reddy’s Laboratories Ltd. (supra), therefore, we are of the view that the decision of the Hon’ble Apex Court in the case of Ind-Swift Laboratories Ltd. case (2011 (2) TMI 6 - Supreme Court) would apply to the facts of the present case before us and the appellant is liable to discharge interest liability on the Cenvat credit wrongly taken from the date of taking of the credit till such time it is reversed. Therefore, we do not find any infirmity in the impugned order. - decided against assessee.
|