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2017 (6) TMI 628 - AT - Central ExciseLiability of interest - wrong availment of CENVAT credit - the appellant had taken the credit, but not utilized the same, and reversed the same prior to the issuance of the SCN - Held that: - Board's Circular dated 03.09.2009 states that interest is payable even when credit has not been utilized - the Larger Bench of the Tribunal in the case of J.K.Tyre & Industries Ltd. v. Asst. Commr. of C.Ex., Mysore [2016 (11) TMI 911 - CESTAT BANGALORE] held that wrong availment of CENVAT Credit, interest is not payable, if reversed before utilization - Board's Circular dated 03.09.2009 observed that interest is payable even when credit has not been utilized - interest not sustainable. Penalty was imposed for contravention of the Rules and the same is warranted. Appeal allowed - decided partly in favor of appellant.
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