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2019 (11) TMI 437 - AT - Service TaxDemand of interest and penalty - Reversal of CENVAT Credit - duty paid on various inputs and inputs services during the period March, 2009 to October, 2010 - reversal of illegally availed CENVAT credit without utilizing the same - time limitation - HELD THAT:- Hon’ble Supreme Court in the case of UOI AND ORS. VERSUS IND-SWIFT LABORATORIES LTD. [2011 (2) TMI 6 - SUPREME COURT] was considered by the Hon’ble Karnataka High Court in the case of Bill Forge [2011 (4) TMI 969 - KARNATAKA HIGH COURT] and it is only after consideration of the said Apex Court decision, it was held that in case the availed Cenvat credit is not utilized, no interest liability would arise. The credit availed by the appellant in the present case was not utilized and remained only in their account books. The same was subsequently reversed by the appellant suo motu on realization that the same was not available to them. In such a scenario, no loss of revenue has occurred to the department so as to confirm the interest, which is nothing but payment to compensate any monetary loss - the confirmation of the interest for making the entry in the records, is neither justified nor in accordance with law. Time Limitation - HELD THAT:- The wrongly availed credit was reversed by the appellant in October, 2010 by reflecting the same in their ST3 returns, whereas the show cause notice stand issued on 18.10.2012 - Inasmuch as the demand of interest in the present case is by invoking the longer period of limitation, for which there are no justifiable reasons - the demand is held to be time barred. Appeal allowed - decided in favor of appellant.
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