2015 (11) TMI 774

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..... ongly availed Cenvat Credit amounting to Rs. 6,31,914/- however the same was reversed on pointing out by the audit. As regard the admissibility of the credit, the appellant has reversed the credit and not contested on merit. However, appellant are contesting on the ground that the extended period should not have been invoked as there is no suppression of fact on the their part and appellant also contesting demand of interest under Section 11AB and penalty imposed under 11AC. 2. Shri. Vinay Sejpal, Ld. Counsel for the appellant submits that they are not contesting reversal of Cenvat 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 Cenva .....

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..... sed to the Revenue therefore Revenue has no occasion to know whether credit is admissible or otherwise. Wrong availment of credit was revealed only as a outcome of audit conducted by the audit officers therefore it is clear case of suppression on the part of appellant. Lower authorities have correctly invoked the extended period. As regard interest demand, he placed reliance on Honble Supreme Court judgment in the case of Union of India Vs. Ind-Swift Laboratories Ltd. [2011(265) E.L.T. 3(S.C.). As per this judgment interest is chargeable from the date of credit 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 wron .....

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..... t has been taken or utilized wrongly or has been erroneously refunded, the same along with interest shall be recovered from the manufacturer or the provider of the output service and the provisions of sections 11A and 11AB of the Excise Act or sections 73 and 75 of the Finance Act, shall apply mutatis mutandis for effecting such recoveries. From plain reading of the Rule 14, it is very clear that interest is chargeable under Section 11AB where the Cenvat credit has been taken or utilized, wrongly refunded. In all the three stages i.e.  credit taken, 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 ch .....

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