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2019 (2) TMI 1232 - AT - Central ExciseDemand of Interest u/r 14 of Cenvat Credit Rules, 2004 - Excess availed CENVAT Credit on imported goods reversed - Rule 3 (i) of CCR, 2004 - Held that:- The interest liability under Rule 14 of Cenvat Credit Rules, 2004 if read with Section 11B of the Central Excise Act, 1944, is applicable when there is delay in payment of duties. The provisions make it clear that no liability to pay duty arises at the time of availment of cenvat credit. It arises only at the time of utilization thereof. Thus, it becomes clear that where the credit has wrongly been availed but has been reversed prior it being utilized by the assessee, no question of any interest liability at all arises. Hon’ble Apex Court in the case of Commissioner, Excise, Mumbai vs. Bombay Dyeing and Manufacturing Co. Ltd. [2007 (8) TMI 2 - SUPREME COURT] has held that where the entry has been reversed before utilization thereof, it amounts to not taking of the credit. Hence, the question of payment of interest does not at all arise. Time Limitation - Held that:- The Department was entitled to invoke the proviso thereof to have the extended period of limitation, but only in the case where there is any apparent act on the part of the appellant to evade the payment of duty/interest - But present is the case of voluntary reversal of the cenvat credit, that too, before utilization thereof. Question of any malafide intent or the mensrea to evade the duty does not at all arise - invocation of extended period was not justified on the part of the Department. Appeal allowed - decided in favor of appellant.
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