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2016 (5) TMI 997 - CESTAT KOLKATARecovery of interest - excess inadmissible Cenvat Credit inappropriately taken was reversed as soon as issue brought to the notice. Also no interest is payable as Cenvat Credit Rules prevalent at the relevant time never prescribed payment of interest - Held that:- it was observed by the department that Appellant has taken credit on Ingot Moulds in the very first year to the extent of 100% when as per Rule-4 of the Cenvat Credit Rules credit was required to be taken in the first year to the extent of 50% of the total credit admissible on capital goods. Appellant paid the excess credit taken but argued that remaining credit of 50% was admissible to them in the next financial year. It is correct that Appellant was eligible to take 50% Cenvat Credit on Ingot Moulds in the next financial year but taking of 100% credit in the very first year was improper in view of the Cenvat Credit Rules. Appellant has utilized credit of ₹ 1,44,669/- in the very first year which was paid on being pointed out by the department. Appellant has, therefore, utilized the amount of ₹ 1,44,669/- from the date of taking Cenvat Credit till it was reversed/paid. This act of utilizing this amount without the authority of law, will attract interest of ₹ 6,759/- as calculated by the Adjudicating Authority. Imposition of penalty - Rule 15(1) of the Cenvat Credit Rules, 2004 - Held that:- for violation of the Cenvat Credit Rules and taking excess credit in violation of Cenvat Credit provisions a penalty of ₹ 2000/- imposed upon the Appellant is justified and appropriate. - Decided against the appellant
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