TMI Blog2014 (9) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... isation in the case of Cenvat credit as in the case of set-off. It is in view of this reason, this Tribunal in the case of Dr. Reddy’s Laboratories Ltd. (2013 (3) TMI 86 - CESTAT BANGALORE) had come to the conclusion that the decision of the Hon’ble High Court in the case of Bill Forge Pvt. Ltd. (2011 (4) TMI 969 - KARNATAKA HIGH COURT) is per incuriam. We are in agreement with the view taken by this Tribunal in the case of Dr. Reddy’s Laboratories Ltd. (supra), therefore, we are of the view that the decision of the Hon’ble Apex Court in the case of Ind-Swift Laboratories Ltd. case (2011 (2) TMI 6 - Supreme Court) would apply to the facts of the present case before us and the appellant is liable to discharge interest liability on the Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er appellate authority who vide the impugned order dismissed the appeal. Hence the appellant is before us. 3. The learned counsel for the appellant submits that, in the present case, even though the appellant had taken the Cenvat credit wrongly, they did not utilize the same. Therefore, the appellant is not liable to discharge any interest liability on the Cenvat credit wrongly taken. It is his contention that the ratio of the judgment of the Hon ble Apex Court in the case of Union of India v. Ind-Swift Laboratories Ltd. - 2011 (265) E.L.T. 3 (S.C.) = 2012 (25) S.T.R. 184 (S.C.) will not apply inasmuch as the appellant has not utilised the credit and, therefore, the question of recovery of any Cenvat credit would not arise at all. On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the said decision is per incuriam inasmuch as the decision did not take into consideration the provisions of Rule 3 of Cenvat Credit Rules, 2004 which provided for taking of the credit as soon as the inputs are received and utilisation of the credit immediately thereafter without any co-relation to the output to be produced from the inputs received. Accordingly, he pleads that the appellant should be put to terms. 5. We have carefully considered the submissions made by both the sides. We find that the issue involved in the present appeal lies in a narrow compass and, hence, the appeal itself can be disposed of at this stage. Therefore, after dispensing with the requirement of pre-deposit, we take up the appeal itself for consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve in nature, even if the credit has been taken wrongly, liability to pay interest would accrue. In the Bill Forge Pvt. Ltd. case (supra) the Hon ble High Court proceeded on the assumption that Cenvat credit is in the nature of a set-off or an adjustment and the credit is taken at the time of removal of excisable goods. It is in that premise the Hon ble High Court held that interest liability would not accrue if the credit taken has not been utilised. However, this view of the High Court ignores the provisions of Rule 3 of the Cenvat Credit Rules which provides for taking of the credit as soon as the inputs are received and utilisation of such credit at any time thereafter. There is no one to one correlation between taking of credit and its ..... X X X X Extracts X X X X X X X X Extracts X X X X
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