75th Founding Day Lecture Meeting on “India@2030” Know More

November 2015

[2015-TIOL-2081-CESTAT-MAD] M/s TV Sundram Iyenger and Sons Ltd. vs. Commissioner of Central Excise, Madurai

By Puloma Dalal
Jayesh Gogri
Mandar Telang Chartered Accountants
Reading Time 1 mins
fiogf49gjkf0d
Unless the CENVAT credit wrongly availed is utilised there shall be no payment of interest.

Facts:
The Appellant wrongly availed additional duty of customs as CENVAT credit and also partly utilised the same. Entire erroneously availed credit was reversed, but interest was paid only on the portion utilised and reversed. The Revenue authorities demanded interest also on the unutilised portion.

Held:
The Tribunal relying on the decision of the Supreme Court in case of Commissioner of Central Excise, Mumbai-I vs. Bombay Dyeing & Mfg. Co. Ltd [2007-TIOL-141-SC-CX], held that unless the credit is utilised there would be no payment of interest. Further, the Tribunal noted that such a proposition was not cited before the Apex Court in the matter of Ind-Swift Laboratories Ltd [2011-TIOL-21-SCCX] and thus the case is distinguishable. Accordingly the case was remitted to the adjudicating authority for the limited purpose of quantifying the credit availed and utilized to calculate the interest thereon.

Download PDF

You May Also Like

[2015-TIOL-2134-CESTAT-MUM] Bhima Sahakari Karkhana Ltd vs. CCE, Pune III

[2015-TIOL-2106-CESTAT-MUM] Commissioner, Service tax-I, Mumbai vs. M/s FIL Capital Advisors India, Pvt. Ltd.