TMI Blog2020 (1) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... issuance of the show-cause notice which was issued on 31/01/2018 - Further, the appellant during the disputed period had sufficient balance in their cenvat credit account and they have not utilized the same. Thus, in view of the decision of the Karnataka High Court in the case of COMMISSIONER OF CENTRAL EXCISE SERVICE TAX LARGE TAXPAYER UNIT, BANGALORE VERSUS M/S BILL FORGE PVT LTD, BANGALORE [ 2011 (4) TMI 969 - KARNATAKA HIGH COURT] and Larger Bench decision of this Tribunal in the case of J.K. TYRE INDUSTRIES LTD. VERSUS ASST. COMMR. OF C. EX., MYSORE [ 2016 (11) TMI 911 - CESTAT BANGALORE] , the appellant is not liable to pay the interest. Demand set aside - appeal allowed - decided in favor of appellant. - Central Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest and imposition of penalties. The Assistant Commissioner vide his Order-in-Original dt. 13/06/2018 confirmed the demand of service tax along with applicable interest and imposed equal penalty. Aggrieved by the Order-in- Original, the appellant filed appeal before the Commissioner(Appeals) who partially allowed the appeal. 3. Heard both sides and perused the records. 4.1. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without appreciating the facts and the law and the binding judicial precedents. He further submitted that the appellant had availed excess cenvat credit of ₹ 72,100/- on capital goods during the month of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he period prior to the amendment, various Tribunals including Larger Bench of the Tribunal and various High Courts in the following cases have clearly held that liability to pay interest does not arise in case of reversal of credit before its utilization. i. CCE ST, Bangalore Vs. Bill Forge Pvt. Ltd. [2012(279) ELT 209 (Kar.)] ii. JK Tyre Ind. Ltd. Vs. Asst. Commissioner of C.Ex, Mysore [2016(340) ELT 193 (Tri. LB)] iii. Shree Ram Industries Vs. CCE ST, Bangalore-V [2019(365) ELT 615 (Tri. Bang.)] 4.3. He also submitted that appellant is not liable to pay interest on the excess cenvat credit availed on capital goods as the same was not utilized and it was only a mere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of this Tribunal in the case of JK Tyre Industries Ltd. cited supra, the appellant is not liable to pay the interest. Further I find that the Commissioner(Appeals) has relied upon the decision of the Ind-Swift Laboratories Ltd. Vs. UOI for demanding interest for excess availment of CENVAT credit. But this judgment has been distinguished by the Karnataka High Court in the case of Bill Forge Pvt. Ltd. cited supra. Since the issue is squarely covered in favour of the appellant by the decision of the Karnataka High Court in the case of Bill Forge Pvt. Ltd., by respectfully following the ratio of the above said decision, I am of the considered view that the impugned order is not sustainable in law and therefore the same is set aside by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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