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2022 (10) TMI 189 - CESTAT AHMEDABADRefund of Interest (paid) on reversal of CENVAT Credit - quantification of interest amount - whether the balance of service tax credit should be taken for requantifying the interest or the total credit should be taken? - Rule 3 of Cenvat Credit Rules, 2004 - HELD THAT:- The credit of all the three account is taken i.e. input, inputs service and capital goods the credit balance was maintained much more than the credit reversed by the appellant on which the interest was paid. It is found that under Cenvat Credit Rules, 2004 in terms of Rule 3 all the credits such as credit of input, input service and capital goods is under one pool and no credit can be reversed on that, credit. Therefore, the adjudicating authority has erred in only considering the credit balance of service tax. The total credit of input, input service, and capital goods should be taken to ascertain the unutilized cenvat credit. If the consolidated cenvat credit balance has been maintained more than the cenvat credit reversed, in such case the appellant is not liable to interest post 17.3.2012 accordingly, the claim of the appellant appears to be legal and correct however, the same has to be re-quantified considering the total credit of input, input service and capital goods. The matter is remanded to the adjudicating authority to re-quantify the interest and sanction the same to the appellant - appeal allowed by way of remand.
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