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Komatsu India Private Ltd. Versus Commissioner of Central Excise

2016 (6) TMI 582 - CESTAT CHENNAI

Demand of interest - availment of ineligible credit of service tax on reverse charge basis - later on reversed without utilizing the same - Held that:- the interest is not payable as there has been only an availment and no utilization. It is well settled that when there has been only availment and no utilization and when there is no loss to the Revenue, the question of demand of interest does not arise. The contention of the Revenue that UOI and Ors. Vs Ind-Swift Laboratories Ltd. case [2011 (2) .....

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Decided in favour of appellant - Appeal No. E/41524/2015 - Final Order No.40878/2016 - Dated:- 3-6-2016 - Shri P.K. Choudhary, Judicial Member For the Appellant : Ms. S. Sridevi, Advocate For the Respondent : Shri L. Paneerselvam, AC (AR) ORDER M/s. Komatsu India Private Ltd., appellant herein, are registered with the department for manufacture of :Drump Trucks . The appellants are availing the benefit of cenvat credit scheme and on verification of the service tax records maintained by the appel .....

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is a demand of ₹ 1,86,933/- for the interest portion on the ground that ineligible credit was availed and although it was reversed subsequently, but the interest on the same has not been paid. The appellant had contended that although they had availed of the ineligible credit, they had not utilized the same. It was the contention of the appellant that in terms of Rule 14 of the CCR, a mere wrong availment without utilization would not result in any loss of revenue to the exchequer and ther .....

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owing rulings to substantiate the point that credit when availed but not utilized and reversed is a case where interest is not payable :- (1) T.V.Sundram Iyengar & Sons Ltd. Vs CCE Madurai 2015 (330) ELT 333 (Tri.-Chennai) (2) CCE Vs VAE VKN Industries Pvt. Ltd. 2015 (322) ELT 269 (P & H) (3) Nova Petrochemicals Ltd. Vs CCE Ahmedabad-II 2015 (330) ELT 648 (Tri.-Ahmd.) 4. On the other hand, Ld.A.R Shri L. Paneerselvam, AC (A.R) contended that the credit was availed by the appellant during .....

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ase of Ind-Swift Laboratories Ltd. - 2011 (265) ELT 3 (SC) for upholding the OIA and rejecting the appeal filed by the appellant herein. 5. After hearing both sides, I find that Commissioner (Appeals) in para-9 has clearly observed that demand of interest is sustainable even though appellant did not utilize the credit and paid the same voluntarily. This fact would go to show that the appellant has only availed the credit but not utilized the same. In the ruling relied by the appellant in the cas .....

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