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2023 (6) TMI 368 - AT - Central ExciseLevy of interest under Rule 14 of the Cenvat Credit Rules, 2004 (CCR) read with Section 11AB of the Central Excise Act, 1944 - amount of Cenvat credit taken inadvertently but not utilized - HELD THAT:- In the present facts of the case, the Appellant has asserted that it had sufficient credit balance in its account and also produced relevant statements evidencing the same. Further, the issue of interest on unutilized reversed credit entry was the subject matter before the Hon'ble Supreme Court in the case of UOI AND ORS. VERSUS IND-SWIFT LABORATORIES LTD. [2011 (2) TMI 6 - SUPREME COURT]. The decision was considered by Hon'ble Karnataka High Court in the case of COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX LARGE TAXPAYER UNIT, BANGALORE VERSUS M/S BILL FORGE PVT LTD, BANGALORE [2011 (4) TMI 969 - KARNATAKA HIGH COURT], and it is only after consideration of the aforesaid decision of the Hon’ble Supreme Court it was held that in case the Cenvat credit taken is not utilized, no interest liability would arise. Hon'ble Punjab & Haryana High Court in the case of COMMISSIONER OF C. EX., DELHI-III VERSUS MARUTI UDYOG LIMITED [2006 (10) TMI 63 - PUNJAB & HARYANA HIGH COURT] held that the assessee is not liable to pay interest as the credit was only taken as an entry in the Modvat record and was not in fact utilized. Against the decision, the Special leave to Appeal filed by Revenue, was rejected by the Hon'ble Supreme Court COMMNR. OF CENTRAL EXCISE, DELHI-III VERSUS M/S. MARUTI UDYOG LTD. [2007 (5) TMI 307 - SC ORDER]. In the present case, since the Appellant had sufficient credit balances, there would be no loss of Revenue to the exchequer. Therefore, the imposition of interest in the present proceedings cannot sustain and hence, the impugned orders are set aside. Appeal disposed off.
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