TMI Blog2018 (12) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat Credit, interest is not payable, if reversed before utilization. The demand of interest on unutilised Cenvat Credit, cannot be sustained - appeal allowed in part. - Appeal No. E/78022/2018 - FO/76969/2018 - Dated:- 19-11-2018 - Shri P.K. Choudhary, Member (Judicial) Shri Madhusudan Lila, Manager for the Appellant (s) Shri A.K. Biswas, Suptd.(AR) the Respondent (s) ORDER Per Shri P.K. Choudhary This appeal is listed for admission today. After hearing both sides and despite the amount involved in this case being less than ₹ 2.00 lakhs, the appellant intends to contest the issue on merit, which is admitted and since the issue lies in a narrow compass, with the consent of both sides the same is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., Mysore [2016 (340) E.L.T. 393 (Tri.-LB)] held that wrong availment of Cenvat Credit, interest is not payable, if reversed before utilization. The Tribunal in the case of Garden Silk Mills Ltd. v. Commissioners of Central Excise, Customs Service Tax- Surat-I [2015 SCC Online CESTAT 2361] on the identical issue held in favour of the assessee. The relevant portion of the said decision is reproduced below:- 4 . The learned Authorised Representative for the Revenue strongly refutes the arguments of the learned Counsel and submits that the appellants had reversed the Credit only after the audit pointed out the same and after persuasion by the officers. He also submits that on the issue of interest, there are other decisions by the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and different Benches of the Hon ble Tribunal. It is seen that the Hon ble High Court of Gujarat has observed in Para 7 in the case of Dynaflex Pvt. Ltd. (supra), as under : 7. In this regard it may be germane to refer to the decision of the Apex Court in the case of Commissioner of C. Ex., Mumbai-I v. Bombay Dyeing Mfg. Co. Ltd., 2007 (215) E.L.T. 3 (S.C.), wherein it has held been that when an entry has been reversed before utilization the same amounts to not taking credit. Rule 14 of the Rules makes provision for recovery of interest where the CENVAT credit has been taken or utilized wrongly or has been erroneously refunded. Thus, both, in case where CENVAT credit has been wrongly taken or wrongly utilized, interest, is recover ..... X X X X Extracts X X X X X X X X Extracts X X X X
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