Custom, Excise & Service Tax Tribunal
Asahi Songwon Colors Limited vs Commissioner Of Central Excise And on 20 February, 2018
In The Customs, Excise & Service Tax Appellate Tribunal West Zonal Bench At Ahmedabad ~~~~~ Appeal No : E/12017/2017 (Arising out of OIA No. VAD-EXCUS-001-APP-188/2017-18 dated 05.07.2017 passed by Commissioner (Appeals) of Central Excise, and Service Tax-Vadodara) Asahi Songwon Colors Limited : Appellant (s) Vs Commissioner of Central Excise and Service Tax, - Ahmedabad : Respondent (s)
Represented by:
For Appellant (s) : Shri R. R. Dave, Advocate For Respondent (s): Shri K. J. Kinariwala, AR CORAM :
Dr. D. M. Misra, Hon'ble Member (Judicial) Date of Hearing/Decision: 20.02.2018 ORDER No. A/10402 / 2018 Per : Dr. D. M. Misra Heard both sides.
2. This is an appeal filed against the order-in-appeal No. VAD-EXCUS-001-APP-188/2017-18 dated 05.07.2017 passed by Commissioner (Appeals) of Central Excise, and Service Tax-Vadodara.
3. The issue involved in the present appeal is: whether the appellant are required to pay interest of Rs. 3,51,442/-for availing inadmissible Cenvat credit during the period July 2011 to August 2015.
4. The Ld. Consultant R. R. Dave for the appellant submits that they have reversed the credit along with interest of Rs. 3,51,442/-. The present appeal relates to refund claim of Rs. 3,51,442/- paid as interest on the inadmissible credit. It is his contention that at the relevant time there was sufficient balance lying in their Cenvat credit account, therefore, no interest was required to be paid for availing inadmissible credit on the respective input services, namely, Rent-a-Cab Service, Outdoor Catering Service. Further, he fairly accepts that for the period prior to 17.03.2012, this Tribunal has in the case of Atul Ltd. & Ors. vs. CCE vide final order No. A/10685-10696/2017 dated 31.03.2017 held that interest is payable. However, after amendment to the relevant Rule by Notification No. 12/2012-CE dated 17.03.2012, credit availed and not utilized if reversed, subsequently, no interest is payable. It is his contention that therefore interest paid for the period after 17.03.2012 is liable to be refunded.
5. The Ld. AR for the Revenue reiterated the findings of the Ld. Commissioner (Appeals).
6. I find that applicability of interest on availment of credit not admissible is required to be paid prior to 17.03.2012 in view of the judgement of this Tribunal in Atul Ltd. & Ors. case (supra). Further, post amendment to Rule 14 by virtue of Notification No. 12/2012-CE (N.T)dated 17.03.2012, interest is required to be paid on inadmissible credit if availed and utilized. Therefore, in the present case, refund of interest on the credit reversed after 17.03.2012, is admissible to appellant. Accordingly to compute the interest amount for the period after 17.03.2012, the matter is remanded to the adjudicating authority. Appeal is allowed by way of remand to the adjudicating authority.
(Dictated and pronounced in the open Court) (D. M. Misra) Member (Judicial) G.Y. 3 Appeal No. E/12017/2017