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TMI Blog2017 (2) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the case are that appellant had engaged independent manufacturers, referred to as Away Centre Fabrication Vendors (ASF Vendors) to manufacture components and despatch the same directly to the sites of their customers. They also engaged independent inspection agencies to check the quality of the goods manufactured by such ASF vendors. Such inspection took place at the premises of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e placed reliance on the ratio of Hon'ble High Court of Madras in the case of CCE Madurai Vs Strategic Engineering (P) Ltd. - 2014 (310) ELT 509 (Mad.) to support her contention that interest liability would not be applicable in their case. 2.1 With regard to penalty, Ld. Advocate submitted that, at the first place, availment of credit was only on the misconception of law which they h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh it may not have been utilized, would result in provisions of interest liability under Section 11AB being attracted. For this reason, penalty is also imposable. 4. Heard both sides. The issue in question is no longer res integra and has been settled by a number of High Court decisions including that of Billforge Pvt. Ltd. (supra). Ratio of judgement in Billforge case has been follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act, this Court has perused the entire decision reported in 2012 (26) S.T.R. 204 (Karnataka) (Commissioner of Central Excise & S.T., Bangalore v. Bill Forge Private Limited) and ultimately found that mere taken of CENVAT credit facilities is not at all sufficient for claiming of interest as well as penalty. 11. It is an admitted fact that Rule 14 of the Cenvat Credit Rules as been subsequently am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be dismissed. Respectfully following the maxim of stare decisis and following the ratio set down in the aforesaid decision, I have no hesitation in holding that no interest liability will arise in the present case also and, consequently, there cannot be any imposition of penalty. Appeal is therefore allowed. However, there shall be no interference in the matter of reversal of cenvat c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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