TMI Blog2006 (9) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... , Bangalore. As the issue lies in a short compass, they are taken up together for the disposal as per law. 2.Mrs. Rukmani Menon, learned Advocate appeared for the appellants and Shri K.S. Reddy, learned JDR appeared for the Revenue. 3.The learned Advocate urged the following points :- (i) The learned Advocate narrated the circumstances leading to the present appeal. The appellants were availing input credit for payment of duty on final products. However, they wanted to avail the benefit of Notification No. 30/2004 dated 9-7-2004, thereby the final products could be cleared free of duty. The exemption is subject to reversal of Cenvat credit on the inputs and the inputs contained in the final products as on 9-7-2004. The case of the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of Rs. 32,45,419/- from their PLA. Therefore in this background for the Commissioner (Appeals) to hold that they utilized the credit after 9-7-2004 is totally incorrect. (iii)The Commissioner (Appeals) has not given any finding with respect to the contentions that the appellants had not contravened the provisions of Rule 12 of Cenvat Credit Rule, 2002 (now Rule 14) which provides for recovery of credit wrongly availed or utilized. There has been no wrong availment or utilization of credit as far as the appellant is concerned. The credit availed and utilized prior to 9-7-2004 was done in the prescribed manner and after following necessary procedure. Hence, there is no justification in demanding interest which can only be demanded for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the present case, when the credit was availed, the appellants were paying duty on the final products. It is not the case of the Department that the Cenvat Credit was taken even when the final product was exempted. In any case, there would not any necessity to take Cenvat Credit, if there is no duty liability on the final product and as per Rule, one cannot take it also. Therefore there is no wrong availment or wrong utilization of Cenvat credit. Only when the appellants decided to avail the benefit of notification, there was a compulsion and requirement to reverse the Cenvat credit utilized. The Department's contention is that that there is a delay and hence they are liable for payment of interest. It should be borne in mind that the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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