TMI Blog2016 (11) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... is no more res intera and is settled in favour of the appellant by a decision of the Hon'ble Karnataka High Court in the case of CCE &ST., LTU, Bangalore Vs. Bill Forge Pvt. Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT] where it was held that interest and penalty is not imposable where credit wrongly availed has been reversed prior to utilization. The appellant had merely availed the credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and imposing a penalty of ₹ 1,00,000/- (Rupees One Lakh only) under Rule 15(1) of the Cenvat Credit Rules 2004. Briefly the facts of the present case are that the appellant is a Public Sector Undertaking engaged in the manufacture of excisable goods falling under Chapter 84 and 87 of the Central Excise Tariff Act. During the audit, the audit party observed that the appellant-company has ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T 209 (Kar.)] and also in the case of CCE Madurai Vs. Strategic Engineering (P) Ltd. [2014 (310) ELT 509 (Mad.)] wherein, following the decision in the case of M/s Bill Forge Pvt. Ltd., it was held that interest and penalty is not imposable where credit wrongly availed has been reversed prior to utilization. Learned counsel for the appellant also submitted that this Hon ble Bench in the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, learned A.R reiterated the findings of the Commissioner. 3. In view of the Larger Bench of the Tribunal following the decision of the Hon ble Karnataka High court in the case of Bill Forge Pvt. Ltd. (supra), I set aside the impugned order and hold that no interest is demandable from the appellant and no penalty can be imposed. Hence the appeal is allowed with consequential relief if any. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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