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2016 (3) TMI 473 - CESTAT NEW DELHI

2016 (3) TMI 473 - CESTAT NEW DELHI - 2016 (333) E.L.T. 107 (Tri. - Del.) - Demand of interest and penalty - reversal of Irregularly availed cenvat credit - Held that:- In the present case, since taking of credit is a mere book entry and the same has not been utilized by the appellant, the question of compensating the Government does not arise because there is no loss of Revenue to the Government exchequer. With regard to the payment of interest for late reversal of cenvat credit.

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ilized for clearance of final product.

Section 11A of the Central Excise Act, 1944, was substituted w.e.f. 08.04.2011 by section 63 of the Finance Act, 2011. The effect of substitution is that sub-section (6) was inserted in section 11A. Since, the period involved in the case in hand is from December, 2010 to March 2011, the provisions of sub-rule (6), inserted subsequently, will not have any application for imposition of penalty. Further, the provisions of Rule 15(1) of the Cenvat Cr .....

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uted period, the appellant had availed cenvat credit on angles, beams, Purlin & Roof Sheeting, Wall Panel etc., treating the same as input for manufacture of capital goods i.e. Steel Structural of Pre Fabricated Steel Building inside the factory premises. Taking of such cenvat credit was objected to by the audit wing of the Central Excise Department. Immediately the appellant reversed the irregularly availed cenvat credit. However, the appellant did not pay the interest amount for late rever .....

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ommissioner (Appeals) by relying on the judgment of Honble Supreme Court, in the case of UOI vs Ind Swift Laboratories Ltd. reported in 2011 (265) ELT 3 (SC). Hence, the present appeal before this Tribunal. 2. Heard the Ld. Counsel for both the sides and perused the records. 3. I find that the irregularly availed cenvat credit was reversed by the appellant upon detection of mistake by the Audit Wing of the Central Excise Department and before issuance of the SCN. It is an admitted fact that the .....

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ernment does not arise because there is no loss of Revenue to the Government exchequer. With regard to the payment of interest for late reversal of cenvat credit, the Honble Karnataka High Court in the case of CCE & ST, LTU, Bangalore- vs Bill Gorge (P) Ltd. reported in 2012 (279) ELT 209 (Kar.) has held that the credit taken if not utilized for payment of Central Excise duty, the same bears the character of a mere book entry and the interest liability cannot be confirmed against the assess .....

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