TMI Blog2016 (6) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Cenvat credit wrongly taken, but not utilized. The Revenue issued SCN for recovery of interest of ₹ 59,895/- for wrongly taken cenvat credit, which was not utilized by the Appellant, M/s The Simbhaoli Sugar Mills Ltd. 3. The appellant represented by the ld.Advocate, Mr. Rajesh Chibber, mainly argues that there has been an amendment in Rule 14 of Cenvat Credit Rules, 2004, whereby the wordings Cenvat credit taken or utilized wrongly were replaced by Cenvat credit taken and utilized, saying that when they did not utilize the Cenvat credit liability of interest cannot be fixed against them. 3.1 The appellant also cites following case laws in support of their stand : (i) Commr. of Central Excise, Allahabad : Balrampur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de effective retrospectively unless it is clearly brought out in the amendment itself and which is not the case here. 5. We have carefully considered the facts on record as well as the submissions made by both the sides. The appellant is a manufacturer of sugar and had taken wrong Cenvat credit of ₹ 4 lakhs (approx.) on various goods, which were later on found not entitled to the said Cenvat credit. When it was pointed out so by Audit, the appellant immediately reversed the wrongly taken Cenvat credit. It has been found that there was no malafide intention in this regard on the part of the appellant. The liability of interest for which SCN was issued is about ₹ 59,895/- only. 5.1 The main issue here is, where the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant has taken the Cenvat Credit, the same has been reversed on pointing out therefore the facts of this case are similar to the case of Bill Forge Pvt. Ltd. (supra) and distinguishable from the facts of the case of Ind-Swift Laboratories Ltd. (supra), as in the case of Ind-Swift Laboratories Ltd. (supra), the Cenvat Credit was taken by the assessee on the strength of fake invoice and credit was not reversed by them but it was recovered by way of demanding duty. Therefore, the said facts are not applicable to the facts in hand. (emphasis supplied). In these terms, we hold that the appellants are not liable to pay interest for wrongful availment of Cenvat Credit which has been reversed before utilization by the appellant in light o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry is made in the register. Therefore, this is a procedure whereby the manufacturers can utilise the credit to make payment of duty to discharge his liability. Before utilization of such credit, the entry has been reversed, it amounts to not taking credit. Reversal of cenvat credit amounts to non-taking of credit on the inputs (emphasis supplied). 21. Interest is compensatory in character, and is imposed on an assessee, who has withheld payment of any tax, as and when it is due and payable. The levy of interest is on the actual amount which is withheld and the extent of delay in paying tax on the due date. If there is no liability to pay tax, there is no liability to pay interest. Section 11AB of the Act is attracted only on delayed pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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