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2016 (3) TMI 709 - AT - Central ExciseRecovery of interest on the cenvat credit wrongly taken - Held that:- Where the cenvat credit is taken or utilized or erroneously refunded, the same along with interest should be recovered from the manufacturer or the provider of output service and the provisions of Section 11A and 11AB shall apply mutatis mutandis for effecting such recoveries. The recovery of interest is under Rule 14. Only the mode of recovery is as provided for under Section 11AB of the Central Excise Act. The Hon’ble Supreme Court in the case of Ind-Swift Laboratories Ltd. (2011 (2) TMI 6 - Supreme Court ) examined the question whether interest would be liable to be paid even when the cenvat credit has been taken wrongly but not utilized and noted that since the Rule covers both the situations i.e. cenvat credit taken or utilized wrongly and the word “or” is disjunctive in nature, even if the credit has been availed wrongly, the liability pay interest would accrue. Therefore hold that the appellant is liable to discharge interest liability paid subsequently under protest to the respondent. - Decided against assessee.
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