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TMI Blog2017 (7) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... erest liability of Rs. 7,44,584/- was proposed in respect of such credits taken irregularly for the period 01.04.2005 to 31.03.2008. Such interest liability has been confirmed by the adjudicating authority in the impugned order. Hence this appeal. 2. Today, when the matter came up for hearing, Ld. Advocate Ms. S.Vishnupriya submits that although appellant may have taken credit in respect of the payments made to the service provider, however, in each case, the credit thereof was utilized only after the payment was effected. She draws attention to Rule 4 (7) of the Cenvat Credit Rules, 2004 to contend that the said sub-rule talks about cenvat credit on input service being "allowed". She also draws attention to the judgment of the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision reported in 2012 (25) S.T.R. 184 (S.C.) - 2011 (265) E.L.T. 3 (S.C.) (Union of India v. Ind-Swift Laboratories Limited), wherein the Apex Court has given a finding to the effect that in Rule 14 of Cenvat Credit Rules, 2004 it has been clearly mentioned three stages, known as taken or utilization or erroneous refund. In the instant case, the first limb of Rule 14 of the said Rules is applicable and therefore, the assesses is bound to pay interest as well as penalty. The Honourable Apex Court has dealt with Rule 14 of the said Rules and subsequently on the basis of facts available in that case has given a finding to the effect that assessee therein is liable to pay interest as well as penalty. 9. The learned counsel appearing for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Miscellaneous Appeal deserves to be dismissed." In my opinion, the ratio of Strategic Engineering judgment (supra) would be fully applicable to the facts of this case also. 6. In the circumstances, the matter requires to be remanded to the adjudicating authority for de novo consideration keeping in mind the ratio of Strategic Engineering case (supra) as also to give another opportunity to the appellant to produce bill wise details to establish that the credits availed by them have been utilized only after payments were effected to the concerned service provider. So ordered. Needless to say, in such de novo consideration, the appellant will be given suitable opportunities for presenting their case, including additional submissions filed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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