TMI Blog2018 (3) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... ersal of CENVAT credit and, therefore, renders the proceedings for recovery to be a non-starter - penalty not warranted. Interest - Held that: - interest liability is modified to such extent that the utilization of CENVAT credit before the date of reversal did not fall below the amount so reversed and the interest liability restricted only to such deficits as are evidenced in the CENVAT credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e him. Learned Counsel for appellant contends that the disallowed CENVAT credit pertains to services utilized for setting up of a factory and that, based on amendment to definition of input service with effect from 5th April 2011 omitting the activities pertaining to setting up of such facilities, the eligibility to CENVAT credit has been denied. 2. Learned Counsel for appellant placed relian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated that the credit taken had been reversed by them which, in accordance with the decision of the Hon ble Supreme Court in Chandrapur Magnet Wires (P) Ltd v. Collector of Central Excise, Nagpur [1996 (81) ELT 3 (SC)], would erase the liability to have the duty recovered. It is also a further contention that the interest has not been correctly computed inasmuch as the impugned order did uphold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the proceedings for recovery to be a non-starter as held by the Hon ble Supreme Court in re Chandrapur Magnet Wires (P) Ltd. Consequently, the penalty imposed on the appellant is without any basis in law and must be set aside. 6. The sole issue that remains is the liability to interest. The first appellate authority has taken a contradictory stand in upholding the interest liability that has ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
