TMI Blog2015 (11) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... erest under Rule 14 read with Section 11AB. - simply because the case was settled by Settlement Commission interest provision will not vary, Rule 14 is applicable irrespective whether it is a case settled by Settlement Commissioner or otherwise therefore on this ground Hon’ble Apex Court judgment can not be distinguished. I therefore held that the interest is chargeable from the date of taking credit in the Cenvat account of the appellant. As regard imposition of penalty under Section 11AC, as I held above extended period is rightly invoked and demand was also rightly confirmed by invoking proviso to Section 11A(1) the provision of Section 11AC would unavoidably attract and accordingly penalty under Section 11AC is sustainable. Even as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Credit on merit however there is no malafide on their part for the reason that they had under bonafide belief and moreover they had accumulated balance of Cenvat Credit more than ₹ 4 crores in their Cenvat account, therefore there can not be any intention to wrongly avail a small amount of ₹ 6,31,914/- therefore demand is not sustainable on the ground of time bar. As regard interest he submits that as against credit of ₹ 6,31,914/- they had accumulated balance amount of ₹ 4 crores and disputed credit was not utilized till the date of reversal. He submits that interest is applicable only from date of utilization of the credit and not from the date of taking of the credit in the Cenvat account. In support of his arg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit taken. He also refers to the Rule 14 of Cenvat Credit Rules, 2004 wherein it is clearly provided that interest shall be recovered where Cenvat Credit has been taken or utilized wrongly or has been erroneously refunded. In view of this unambiguous rule, interest is chargeable from the date of taking credit in to Cenvat account therefore interest was correctly demanded. As regard penalty he submits that since there is clear suppression of fact on the part of appellant is taking wrong credit, Section 11AC is unavoidably invokeable and penalty under Section 11AC was correctly imposed. 4. I have carefully considered the submissions made by both the sides and perused the record. 5. The appellant are not disputing wrong availment of cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken, credit utilized or wrongly refunded interest is chargeable. In the present case, since the appellant has taken wrong credit even though not utilized as per the above provision, interest is chargeable from the date of taking credit. Interpreting such statutory provision Honble Supreme Court in case of Ind-Swift Laboratories Ltd(supra) has correctly held that interest shall be chargeable from the date of taking credit. Ld. Counsel in the argument stated that this Apex Court judgment is on the issue of demand which is settled by Settlement Commission and same is not applicable hence liable to be distinguished. On this, I am of the view that simply because the case was settled by Settlement Commission interest provision will not vary, Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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