9911796707
TMI Blog2014 (4) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... of books and accounts of the appellant it was observed that they had availed credit of Rs. 84,761/- on the input services which were in fact used in their other unit commissioning at Mandhar. Since the input services were not used in the factory of the appellant it appeared that the said credit amounting to Rs. 84,761/- was not admissible to them. On being pointed out the appellant had reversed the entire credit of Rs. 84,761/- on 22-6-07 and 31-7-07. However, a show cause Notice dated 31-7-07 was issued proposing disallowance recovery of inadmissible credit along with interest payable thereon and appropriation of amount paid towards such recovery. The said notice also proposes imposition of penalty on the appellants under Rule 15 of Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s reversed before utilization, it would mean that Cenvat credit has not been taken. In view of this decision Board vide Circular No. 858/16/2007-CX., dated 8-11-2007 also clarified that if Cenvat credit is reversed before utilization, it would amount to credit not having been taken. Though above decision and Board's clarification was with reference to different matter, principle laid down can be applied in general. In the present matter the appellant had reversed the credit without utilization. In the circumstances since it amounts to non availment of credit, there is no question of payment of interest. Hon'ble High Court of Punjab & Haryana in its decision in the case of Swift Laboratories Ltd. v. Commissioner - 2009 (240) E.L.T. 328 have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned Advocate appearing for the respondent draws my attention to a latest decision of the Hon'ble High Court of Karnataka in the case of Commissioner of Central Excise and S.T., Bangalore v. Bill Forge Pvt. Ltd. - 2012 (26) S.T.R. 204 (Kar.) = 2012 (279) E.L.T. 209 (Kar.). The Supreme 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, immedia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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