TMI Blog2015 (10) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants have not seriously contested the necessity or correctness of reversal of the Cenvat Credit before the lower authorities. However, they are seriously contesting the levy of interest and penalty. On the issue of levy of interest, there are conflicting decisions by various Hon’ble High Courts and different Benches of the Hon’ble Tribunal - in this case the appellant had reversed the credit as soon as it was pointed out that they had wrongly availed the same and they had not utilised the Cenvat Credit so availed till the time of reversal of the same.Therefore, the decision of Hon’ble Jurisdictional High Court relying upon the decision of the Hon’ble Supreme Court on the very same issue is applicable in this case. We, therefore, hold th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon ble Supreme Court in the case of UOI vs Ind-swift Laboratories Ltd - 2011(265) ELT.3 (SC), of the Hon ble Gujarat High Court in the case of CCE Vs Dynaflex Pvt Ltd - 2011(266)ELT.41 (Guj.), and also by the decisions of Hon ble High Courts of Bombay and of Karnataka. He also submits that there is no reason to impose penalty under Section 11AC as there was no suppression in this matter. They are duty paying assessee and filing returns and has taken Cenvat Credit in one of the units eligible for the same. He also submits that they had readily reversed the credit on being pointed out the irregularity. 4. The Learned Authorised Representative for the Revenue strongly refutes the arguments of the Learned Counsel and submits that the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly contesting the levy of interest and penalty. On the issue of levy of interest, there are conflicting decisions by various Hon ble High Courts and different Benches of the Hon ble Tribunal. It is seen that the Hon ble High Court of Gujarat has observed in Para 7 in the case of Dynaflex Pvt Ltd (supra), as under: 7. In this regard it may be germane to refer to the decision of the Apex Court in the case of Commissioner of C. Ex. Mumbai-I v. Bombay Dyeing Mfg. Co. Ltd., 2007 (215) E.L.T. 3 (S.C.), wherein it has held been that when an entry has been reversed before utilization the same amounts to not taking credit. Rule 14 of the Rules makes provision for recovery of interest where the CENVAT credit has been taken or utilized wrongly o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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