TMI Blog2023 (12) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... el, etc., used for construction of warehouses from which taxable services under the head renting of immovable property are performed, the inputs are eligible for Cenvat credit - credit allowed. Chargeability of interest under Rule 14 of CCR on the amount of Cenvat credit taken and reversed - it is claimed that there has been subsequent amendment in Rule 14, wherein it has been provided that interest is chargeable on Cenvat credit taken and utilized - HELD THAT:- In view of the ruling of Hon ble Apex Court in UOI AND ORS. VERSUS IND-SWIFT LABORATORIES LTD. [ 2011 (2) TMI 6 - SUPREME COURT] and as the period falls prior to the amendment of Rule 14, and there is no specific mention in the amending Act that amendment shall apply retrosp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d reversed in April 2008. It appeared that Appellant is required to pay interest on the same under Rule 14 of CCR. 3. Heard the parties. 4. Considering the issues involved, so far the issue of taking credit of Rs.77,21,700/- on MS items is concerned, we find that the issue is no longer res integra and it has been held by the Hon ble Gujarat High Court in Mundra Ports and SEZ Ltd [2015 (39) STR 726 (Guj)], wherein under similar circumstances, the Assessee had used cement and steel for construction of port, the same is held to be eligible input. Similarly, Hon ble High Court of AP in Sai Samhita Storages Pvt Ltd [2011 (270) ELT 33 (AP)] have held that inputs like cement, steel, etc., used for construction of warehouses from which taxabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd-swift Laboratories Ltd [2011 (265) ELT 3 (S.C.)], it was held that interest is payable even when the credit is taken and reversed prior to the utilization of the same. 7. In view of the ruling of Hon ble Apex Court in Ind-swift Laboratories Ltd (supra) and as the period falls prior to the amendment of Rule 14, and there is no specific mention in the amending Act that amendment shall apply retrospectively, we uphold charging of interest. 8. In view of our aforementioned observations and findings, we allow the Appeal in part to the effect that Cenvat credit has been rightly taken and also hold that interest is rightly charged. All penalties imposed are set aside, in the facts and circumstances of the case. (Dictated and pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
