TMI Blog2017 (12) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... E PVT LTD, BANGALORE [2011 (4) TMI 969 - KARNATAKA HIGH COURT], where it was held that Without the liability to pay duty, the liability to pay interest would not arise - appellant not liable to pay interest - appeal allowed - decided in favor of appellant. - E/22083-22085/2015-SM - 22672-22674/2017 - Dated:- 30-10-2017 - Shri SS Garg, Judicial Member Shri Chandra Sekhar, Chartered - For the Appellant Shekar And Yathish, [CA] - For the Respondent ORDER Per: SS GARG These three appeals have been filed by the appellant against three Orders-in-Appeal being No.101/2015-CE, No.104/2015-CE and No.105/2015-CE all dated 27/02/2015 against recovery of non-payment of interest and penalty due to reversal of CENVAT credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same are contrary to the binding judicial precedent. He further submitted that the appellant has reversed the cenvat credit after being pointed out by the audit. He further submitted that the appellants have not utilised the cenvat credit availed and they had sufficient credit balance in their CENVAT credit account during the relevant period. The appellant has also produced copies of CENVAT Credit account which shows that sufficient credit was available during the relevant period and further that they have had availed the credit but not utilised the same. Therefore they are not liable to pay the interest. This issue is no more res intera and has been settled in favour of the appellant by the decision of Hon'ble High Court of Karna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from the date of issue of such order, instruction or direction, as the case may be, no interest shall be payable and in other cases the interest shall be payable on the whole of the amount, including the amount already paid.] [(2) The provisions of sub-section (1) shall be payable is reduced by the become payable or ought to have been paid before the date on which the Finance Bill, 2001 receives the assent of the President,] Explanation 1 : Where the duty determined to be payable is reduced by the Commissioner (Appeals), the Appellate Tribunal [National Tax Tribunal] or, as the case may be, the court, the interest shall be payable on such reduced amount of duty. Explanation 2 : Where the duty determined to be payable is inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory in character and is imposed on an assessee who as withheld payment of any tax as and when it is due and payable. The levy of interest is geared to actual amount of tax withheld and the extent of the delay in paying the tax on the due date. Essentially, it is compensatory and different from penalty - which is penal in character. 4.2. Further the appellant has relied upon the following cases:- i. Page Apparels Vs. CCE [2007(208) ELT 108 (CESTAT)] ii. Sri Chamundeshwari Sugars Vs. CCE [2007(217) ELT 65 (CESTAT)] iii. CCE Vs. Mahatma Phule MSSG Ltd. [2007(213) ELT 568] iv. Hari Krishna Steel Corporation Vs. CCE, Bhavnagar [2006(194) ELT 63 (Tri. Mum.)] v. Maruthi Udyog Vs. CCE [2006(196) ELT 173 (CEST ..... X X X X Extracts X X X X X X X X Extracts X X X X
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