Custom, Excise & Service Tax Tribunal
M/S.Jaypee Greens vs Cce & Cst, Noida on 13 May, 2014
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, NEW DELHI, PRINCIPAL BENCH NEW DELHI
Date of Hearing/Decision:13.05.2014.
For approval and signature:
Honble Smt. Archana Wadhwa, Member (Judicial)
Honble Mr. Rakesh Kumar, Member (Technical)
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Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
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Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
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Whether Their Lordships wish to see the fair copy of the Order?
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Whether Order is to be circulated to the Departmental authorities?
Service Tax Stay No.58286 of 2013 in
Appeal No.ST/57684 of 2013-CU(DB)
(Arising out of Order-in-Appeal No.405/APPL/NOIDA/12 dated 28.12.2012 passed by the Commissioner of Central Excise (Appeals), Noida).
M/s.Jaypee Greens Appellant
Vs.
CCE & CST, Noida Respondent
Appearance: Rep. by Shri S.K. Pahwa, Advocate for the appellant.
Rep. by Shri Jayant Sahay, DR for the respondent.
CORAM: Honble Smt. Archana Wadhwa, Member (Judicial) Honble Shri Rakesh Kumar, Member (Technical) Final Order No.52219/2014 Per Archana Wadhwa:
After allowing the stay petition, we proceed to decide the appeal itself inasmuch as a short and covered issue is involved.
2. The issue relates to the liability of interest in respect of the un-utilised wrongly availed reversed credit. The lower authorities have confirmed the interest of around Rs.10 Lakhs by relying upon the Honble Supreme Courts decision in the case of Union of India Vs. Ind-Swift Laboratories Ltd. reported in 2011 (265) ELT 3 (SC).
3. However, we find that the said decision of the Honble Supreme Court was the subject matter of the decision of the Honble Karnataka High Court in the case of CCE Vs. Bill Forge (P) Ltd. reported in [2012] 34 STT 92 [2011] 16 taxmann.com 81 (Karnataka), wherein it was held that if the wrongly availed credit stands reversed before utilization, no interest liability would arise. The said decision stands followed by the Tribunal in a number of appeals.
4. In view of the above, by following the Karnataka High Courts decision, we set aside the impugned order and allow the appeal with consequential relief to the appellant.
( Archana Wadhwa ) Member (Judicial) ( Rakesh Kumar ) Member (Technical) Ckp.
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