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2023 (5) TMI 296 - AT - Central ExciseChargeability of interest under rule 14 of CENVAT Credit Rules, 2004 - period from June 2012 to December 2016 - erasure of demand was finalised - appellant contended that it is settled law that with demand set aside, there is no scope for charging of interest thereof - HELD THAT:- In terms of rule 14 of CENVAT Credit Rules, 2004, interest liability arises only upon credit taken and utilized wrongly. Furthermore, rule 3 and rule 4 of CENVAT Credit Rules, 2004 make it abundantly clear that credit is to be taken upon receipt of the invoice for the service procured. In this particular instance, tax liability arose by deeming the recipient of the service to be the provider and having discharged the tax liability that accrued on receipt of service, credit would be available from such date irrespective of payment not being made immediately to the actual provider of service - It is also to be noted that with the original authority having been held to have travelled beyond the show cause notice, the first appellate authority was also bound within the framework of that finding. Instead, the impugned order has based its outcome on an order which had already been set aside during the first round of litigation and relied upon non-existent material to confirm the leviability of interest. Appeal allowed.
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