Case Law Details
National Aluminium Company Limited Vs Commissioner of Central Excise & Service Tax (CESTAT Kolkata)
CESTAT Kolkata held that as per substituted provisions of Rule 14 of the CENVAT Credit Rules, interest is not leviable where wrongly availed credit is only taken but not utilized.
Facts- Due to a clerical error, the Appellant had inadvertently taken CENVAT Credit on duty paid documents twice. On realising its mistake, the Appellant suo-moto reversed such credit taken by it. The said facts are not in dispute. The Ld. Adjudicating authority observed that although the Appellant has reversed the excess credit taken, it had utilized the same and thus, failed to pay appropriate interest chargeable thereon.
Conclusion- Held that in light of the substitution of Rule 14 of the CENVAT Credit Rules, the intention of legislature, not to impose interest where credit has only been taken but has not been utilized, is duly evident. I also hold that the judgment relied upon by the Ld. Authorized Representative for the Department is distinguishable on facts and is therefore not applicable to the present case of the Appellant.
FULL TEXT OF THE CESTAT KOLKATA ORDER
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