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Phoenix Engineering Versus Commissioner of Central Excise, Nagpur

2018 (2) TMI 903 - CESTAT MUMBAI

Interest on CENVAT credit wrongly availed - Held that: - the appellant has on two occasions wrongly availed cenvat credit but reversed suo motu and on two occasions the appellant has reversed the credit after the same was pointed out by audit - Hon’ble High Court of Bombay in the case of GL&V India Pvt. Ltd. [2015 (5) TMI 375 - BOMBAY HIGH COURT] has held that the interest on cenvat credit wrongly availed is leviable irrespective of the fact that the said credit was utilized or not - demand uphe .....

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cal) Shri D.H. Nadkarni, Advocate, for appellant Shri V.K. Agrawal, Additional Commissioner (AR), for respondent ORDER This appeal has been filed by M/s. Phoenix Engineering against disallowance of credit wrongly availed, confirmation of demand of interest and imposition of penalty. 2. Learned counsel for the appellant argued that certain credit which was wrongly availed by them was reversed. In some cases, the credit was reversed suo motu and in other cases, the credit was reversed after the sa .....

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hat the reversal was being made in compliance with audit Para No.1. b) The audit officers also pointed out excess availment to the tune of ₹ 30,000/- which was also reversed immediately on being pointed out by the officers and a specific remark as above was given in the RG23A Part-II register. c) In the month of June, 2007, inadmissible Cenvat Credit to the tune of ₹ 8,49,783/- was taken, which was suo-moto reversed by them in September 2007 as soon as the mistake was discovered. NOT .....

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008. 2.1 Learned counsel argued that no interest is payable on the said credit for the period when the credit was availed to the time when the said credit was reversed as the said credit was not utilized. It was further argued that there was no intention to evade payment of duty especially in two cases, the credit was suo motu reversed and in other cases, it was merely a clerical error. In support of the claim that the credit was not utilized, learned counsel submitted the pattern of credit avai .....

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hrough the rival submissions. I find that the appellant has on two occasions wrongly availed cenvat credit but reversed suo motu and on two occasions the appellant has reversed the credit after the same was pointed out by audit. The issue before Tribunal is whether in these circumstances, the interest on the credit wrongly availed is leviable or not. Hon ble High Court of Bombay in the case of GL&V India Pvt. Ltd. (supra) has observed as follows:- 13. In view of the clear pronouncement of la .....

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