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2017 (11) TMI 817 - CESTAT BANGALORERefund of interest paid - Department’s case is that the appellant was liable to reverse CENVAT credit as on 31/03/2015. However, it reversed the credit only on 29/07/2015 - appellant case is that they had sufficient balance in the CENVAT credit account and they have not utilised the CENVAT credit and therefore in view of the provisions of Rule 14(1)(i), appellants are not liable to pay interest and the interest paid by them is liable to be returned to them - Held that: - On perusal of Rule 1491)(i) and Rule 14(1)(ii), it is clear that when the CENVAT credit has been wrongly availed but not utilised, interest cannot be recovered. The appellant had sufficient balance in the CENVAT credit account and they have not utilised the CENVAT credit and therefore in view of the provisions of Rule 14(1)(i), appellants are not liable to pay interest and the interest paid by them is liable to be returned to them. Appeal allowed - decided in favor of appellant.
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