Interest is not Payable in case of Reversal of the CENVAT Credit when adequate Credit is available: CESTAT Chennai [Read Order]
By Taxscan Team - On November 15, 2016 12:29 pm
In a recent decision, the CESTAT, Chennai branch ruled that interest cannot be allowed in case of reversal of the CENVAT credit when adequate credit is available under the Excise law.
The appellants, instant case, approached the Appellate Tribunal raising a question that whether interest is payable on the amount of reversal of the CENVAT credit taken but not utilized when adequate credit existed in statutory records.
“It is the consistent view of this Bench following the ratio of the Honble Supreme Court in the case of Commissioner of Central Excise, Mumbai I Vs. Bombay Dyeing & Mfg. Ltd. 2007 (215) ELT 3 (SC) that when there is adequate credit available, reversal arising out of unutilized credit which was taken wrongly shall not result in levy of interest. Therefore, the authority shall examine the record to find out whether on the date of taking credit, there were adequate credit available on record. If he is satisfied, there shall be no levy of interest.” the bench observed.
The Bombay High Court ruled that the orders of higher appellate authorities should be followed unreservedly by the subordinate authorities. The Petitioner, Himgiri Buildcon & Industries Limited a company incorporated under the Companies Act, 1956,
The Bombay High Court allowed release of the vehicle on a bond furnishing 10% of the value of seized goods. The Petitioner, Haresh S. Bhanushali is engaged in transport business and is proprietor of M/s.
