M/S. J K Sons Engineers Pvt. Ltd vs Commissioner Of Customs

Customs Excise and Service Tax Appellate Tribunal11 May 2015

CitationExcise Appeal No. 53121 of 2014

Ratio decidendi

The rule this decision rests on

Where Cenvat credit has been wrongly availed but reversed before it is utilised, and the assessee had sufficient balance in its Cenvat credit account during the intervening period, the assessee is not liable to pay interest for that intervening period.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

IN THE CUSTOMS, EXCISE AND SERVICE TAXAPPELLATE TRIBUNAL, NEW DELHIPRINCIPAL BENCH, COURT NO. IIExcise Appeal No. 53121 of 2014

[Arising out of Order-In-Appeal No. 70(CE)RPR-I/2014 dated 04/3/2014 passed by Commissioner of Customs & Central Excise (Appeals) Raipur]

For approval and signature:

Honble Mr Ashok Jindal, Member (Judicial)

1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3 Whether Their Lordships wish to see the fair copy of the Order?

4 Whether Order is to be circulated to the Departmental authorities?

M/s. J K Sons Engineers Pvt. Ltd. Appellants

Vs.

Commissioner of Customs Respondent

Central Excise, Raipur (CG)

Appearance:

Shri Ravi Hulani, Advocate for the Appellants

Ms. Ranjana Jha, AR for the Respondent

CORAM:

Hon'ble Shri Ashok Jindal, Member (Judicial)

Date of Hearing /decision: 11. 5.2015

ORDER NO. FO/A 51625 /2015 SM

Per Ashok Jindal :

The short issue involved in the matter is whether the appellant is required to pay interest for the intervening period when they have reversed the Cenvat credit which was lying in their Cenvat credit without utilizing the same or not. The issue has been settled by Honble High Court of Karnataka in the case of Bill Forge Pvt. Ltd. [2012 (26) STR 204 (Kar)] wherein the Honble High Court have considered the decision of Apex Court in the case of Ind-Swift Laboratories Ltd. [2011 (265) ELT 3(SC)] and held that if the Cenvat credit availed by the assessee wrongly but same has been reversed before utilization of the same, for intervening period the assessee is not required to pay interest. Admittedly, in this case the amount of reversal or lying in Cenvat credit account unutilized during the intervening period and appellant were having sufficient balance in their Cenvat credit account, therefore, relying on the decision of Bill Forge Pvt. Ltd and CCE Madurai vs. Strategic Engineering (P) Ltd. [2014 (310) ELT 509 (Mad)]. I hold that appellant is not required to pay interest during the intervening period. Therefore, impugned order is set aside. Consequently appeal is allowed with consequential relief.

( Dictated and pronounced in the open court )

( Ashok Jindal ) Member(Judicial)

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