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2019 (5) TMI 956 - AT - Central ExciseDemand of Interest and penalty - reversal of irregularly availed CENVAT credit not utilized - time limitation - HELD THAT:- The issue of applicability of interest when credit availed but not utilized for the period prior to amendment of Rule 14 of CENVAT Credit Rules 2004 is no more res integra as held in favour of the Revenue by the jurisdictional Hon'ble Bombay High Court in the case of THE COMMISSIONER OF CENTRAL EXCISE, PUNE-I VERSUS M/S GL & V. INDIA PVT LTD [2015 (5) TMI 375 - BOMBAY HIGH COURT] where it was held that where CENVAT credit has been taken and utilized wrongly, interest should be payable from the date the CENVAT credit has been utilized wrongly for according to the High Court interest cannot be claimed simply for the reason that the CENVAT credit has been wrongly taken as such availment by itself does not create any liability of payment of excise duty. Time Limitation - HELD THAT:- Interest on the inadmissible credit for the relevant period is payable by the appellant. However, since the interest was demanded for the period from 2006 to 2007 in 2009, and in absence of any suppression of facts, the demand of interest is barred by limitation - Consequently, penalty imposed under Section 11AC of CEA,1944 is also not sustainable. Appeal allowed - decided in favor of appellant.
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