TMI Blog2013 (8) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... ional or illegal - Rule 14 specifically provides that where CENVAT credit has been taken or utilized wrongly or has been erroneously refunded, the same along with interest would be recovered from the manufacturer or the provider of the output service - Decided in favor of Revenue. Whether the respondent was entitled to take CENVAT credit on certain invoices issued by a registered depot of the manufacturer of inputs - Held that:- The assesse took CENVAT credit of the duty indicated in the depot invoices - the availment of the CENVAT credit by the assesse cannot be questioned - The case of the revenue was that there was no evidence of the amounts of duty shown in the depot invoices having been paid by the manufacturer – If the department h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s judgment was reversed by the Hon ble Supreme Court in UOI vs. Ind-Swift Laboratories Ltd.: 2011 (265) E.L.T. 3 (S.C.) and therefore the impugned order has to be set aside. 2. Per contra, it is submitted by the learned counsel for the respondent that the aforesaid remand order of the Tribunal was accepted by the department and hence the decision rendered by the Commissioner (Appeals) in terms of the remand order cannot be challenged by them. It is further pointed out that Rule 14 ibid was subsequently amended so as to create interest liability in respect of CENVAT credit taken and utilized wrongly. This amendment was made by way of substitution of the word and for the word or in the text of Rule 14. It is argued that this amendment discl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cember, 2004 and rightly reversed on 31.10.2005 has to be examined in terms of Rule 14 as it stood during the material period. Rule 14 as it stood during September, 2004 - October, 2005 was considered by the Hon ble Supreme Court in the case of Ind-Swift Laboratories (supra) and it was held as follows: 17. We have very carefully read the impugned judgment and order of the High Court. The High Court proceeded by reading it down to mean that where CENVAT credit has been taken and utilized wrongly, interest should be payable from the date the CENVAT credit has been utilized wrongly for according to the High Court interest cannot be claimed simply for the reason that the CENVAT credit has been wrongly taken as such availment by itself does no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us as it exists all by itself. So far as Section 11AB is concerned, the same becomes relevant and applicable for the purpose of making recovery of the amount due and payable. Therefore, the High Court erroneously held that interest cannot be claimed from the date of wrong availment of CENVAT credit and that it should only be payable from the date when CENVAT credit is wrongly utilized. Besides, the rule of reading down is in itself a rule of harmonious construction in a different name. It is generally utilized to straighten the crudities or ironing out the creases to make a statute workable. This Court has repeatedly laid down that in the garb of reading down a provision it is not open to read words and expressions not found in the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n spite of this, if the impugned legislation cannot be saved the courts shall not hesitate to strike it down. Similarly, for upholding any provision, if it could be saved by reading it down, it should be done, unless plain words are so clear to be in defiance of the Constitution. These interpretations spring out because of concern of the courts to salvage a legislation to achieve its objective and not to let it fall merely because of a possible ingenious interpretation. The words are not static but dynamic. This infuses fertility in the field of interpretation. This equally helps to save an Act but also the cause of attack on the Act. Here the courts have to play a cautious role of weeding out the wild from the crop, of course, without infr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be erroneous. In that regard the submission of the counsel for the appellant is well-founded that once the said credit is taken the beneficiary is at liberty to utilize the same, immediately thereafter, subject to the Credit rules. 4.1 In the above view of the matter, the apex court set aside the Punjab and Haryana High Court s judgment. The impugned order was passed in view of the High Court s judgment and hence requires to be set aside. As per the decision of the Hon ble Supreme Court, the respondent is liable to pay interest on the amount of CENVAT credit for the period from the date of its irregular availment to the date of its reversal, this period being covered by Rule 14 pre-amendment. 5. The impugned order is set aside and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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