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2018 (12) TMI 853 - AT - Central ExciseDemand of Interest - Distribution of credit of service tax paid - reverse charge mechanism - input service distribution - Rule 7A of the Cenvat Credit Rules - Held that:- The appellant had taken credit but not utilized the same and reversed the same prior to the issuance of the show cause notice. The Adjudicating Authority following the Board’s Circular dated 03.09.2009 observed that interest is payable even when credit has not been utilized. Larger Bench of the Tribunal in the case of J.K.Tyre & Industries Ltd. v. Asst. Commr. of C.Ex., Mysore [2016 (11) TMI 911 - CESTAT BANGALORE] held that wrong availment of Cenvat Credit, interest is not payable, if reversed before utilization - the demand of interest on unutilised Cenvat Credit, cannot be sustained - penalty sustained as was imposed for contravention of the Rules. CENVAT Credit - GTA Services - Held that:- The issue is no more resintegra in view of the recent decision of the Hon’ble Supreme Court in the case of Commissioner of Central Excise, Belgaum vs. Vasavadatta Cements Ltd. [2018 (3) TMI 993 - SUPREME COURT], where it was held that It has to be from the place of removal upto a certain point. Therefore, tax paid on the transportation of the final product from the place of removal upto the first point, whether it is depot or the customer, has to be allowed. The demand of cenvat credit is set aside - The demand of interest is also set aside - penalty imposed under Rule 15(3) of the Cenvat Credit Rules, 2004 is upheld. Appeal allowed in part.
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