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2018 (12) TMI 163 - AT - Central ExciseDemand of Interest in terms of Rule 14 of Cenvat Credit Rules, 2004 read with Section 11AA of Central Excise Act, 1944 - Held that:- From the adjudication order that the appellant had taken credit but not utilized the same and reversed the same prior to the issuance of the show cause notice. The Adjudicating Authority following the Board’s Circular dated 03.09.2009 observed that interest is payable even when credit has not been utilized. 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. The demand of interest on unutilised Cenvat Credit, cannot be sustained - appeal allowed in part.
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