TMI Blog2013 (11) TMI 780X X X X Extracts X X X X X X X X Extracts X X X X ..... the same, no interest would become liable to be paid – the demand of interest set aside. The appellant have accepted that they had wrongly availed the credit but it was on account of inadvertent mistake and the fact that appellant continued to reflect the same in their statutory records i.e. Cenvat credit account as also in the quarterly return reflects upon the bonafide of the appellant - The fact of non-utilization of credit and reflection of the same in statutory records reflects upon absence of attempt and commitment causing any prejudice to the Revenue, there is no occasion for imposition of penalty - the appellant was availing credit with due knowledge of the Revenue and was reflecting the same in the statutory records - there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,843/- without utilizing the same. 3. On the above basis, proceedings were initiated against them for confirmation of reverse entry as also for interest and imposition of penalty. The Assistant Commissioner vide his impugned order confirmed the demand of Rs. 3,64,843/- and appropriated the same by observing that it stand already deposited by them by debiting the same in the Cenvat account and a part amount involved is in respect of inputs lying in stock as on 1.4.09 by way of cash. 4. The appellant filed the appeal against the impugned order before Commissioner (Appeals) who however observed that there was short deposit of Rs.11,572/- accordingly directed the appellant to deposit the said amount and also confirmed the interest and up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e finding of Assistant Commissioner wherein he had clearly accepted that the entire amount of duty of Rs. 3,64,843/- stands reversed by the assessee and appropriated by the adjudicating authority. He submits that though the Commissioner has reduced the demand to Rs. 3,38,578/- by taking into account the fact that approximately Rs. 30,000 Cenvat credit was lying unutilized in the records as on 1.4.09 but he observed that there was shortage of 11,000 as against finding of Asstt. Commissioner, which do not stand challenged by the Revenue. 7. I have heard learned DR Shri R.K. Verma, who reiterated the finding of the authorities below. 8. After having gone through the impugned order I find that Asstt. Commissioner has in categorical stand ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme Court decision in the case of Ind-Swift Laboratories Ltd. was considered and it was held, that the interest would be payable from the date Cenvat credit is taken or utilized wrongly. By following the said decision of the Hon'ble Supreme Court, the Hon'ble Karnataka High Court, in an identical set of facts held that the assessee had not taken or utilized the Credit but only availed wrong credit in their account books and on pointing out the mistake, immediately reversed the entry. As no benefit of wrong entry in account books was taken, interest is not payable. The said order of the Karnataka High Court stand subsequently followed by them in the case of Commissioner of Central Excise, Bangalore V/s Pearl Insulation Ltd 2012 (281) E.L.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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