2014 (11) TMI 89 - MADRAS HIGH COURT

Levy of interest on reversal of CENVAT Credit - Credit taken but not utilized till reversal - Rule 14 of Cenvat Credit Rules, 2004 - Held that:- it is an admitted fact that Rule 14 of the Cenvat Credit Rules has been subsequently amended, wherein it has been clearly stated as “taken and utilised”. Therefore it is quite clear the mere taking itself would not compel the assessee to pay interest as well as penalty. Further, as pointed out earlier, the subsequent amendment has given befitting answer to all doubts existed earlier. Since the subsequent amendment has cleared all doubts existed earlier in respect of Rule 14 of the said Rules, it is needless to say that the argument advanced by the learned counsel appearing for the appellant/Department is erroneous, whereas the argument advanced on the side of the respondent is really having merit and the substantial questions of law settled in the present Civil Miscellaneous Appeal are not having substance - Decided against Revenue.