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2015 (10) TMI 1549 - AT - Central ExciseDemand of interest u/s 11AB - Held that:- Allegation in the show cause notice is that the appellant utilized the credit cannot be sustained. The adjudicating authority confirmed the demand of interest only on the ground that they have taken the credit and they are liable to pay interest - petitioner utilized the credit of ₹ 5,71,47,138/- only. In this contest, it was held that the appellant/petitioner is liable to pay interest from the date of availing credit and not from the date of utilization. I find that the Hon’ble Madras High Court in the case of Strategic Engg Pvt Ltd (2014 (11) TMI 89 - MADRAS HIGH COURT) after considering the decision of the Hon’ble Supreme Court in the case of Indo Swift Laboratories Ltd (2009 (7) TMI 98 - PUNJAB & HARYANA HIGH COURT) held that mere taking credit itself would not compel the assessee to pay interest as well as penalty. It is also observed that subsequent amendment Rule 14 of cenvat credit would make it clear. Demand of duty for the extended period of limitation cannot be sustained. payment of interest under Section 11AB to the Central Excise Act as they have not utilised such credit and the imposition of penalty under Section 11AC of the said Act, cannot be sustained. - Decided in favour of assessee.
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