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Facts:
The Appellant, a manufacturer wrongly availed CENVAT credit on certain input services during the year 2005- 06.On being pointed out by the Central Excise officers, entire credit availed was reversed without utilisation. Show Cause Notice was issued demanding interest and penalty relying on the Board’s Circular No. 897/17/2009- CX dated 03/09/2009 wherein it was clarified that in view of the ruling of the Apex Court in the case of Ind-Swift Labs Ltd [2011-TIOL-21-SC-CX] interest is leviable in case of wrong taking of credit or utilisation.
Held
The Tribunal, relying on the decision of the Madras High Court in the case of Strategic Engineering (P) Ltd. [2014-TIOL-466-HC-MAD-CX] wherein it was held that the amendment to Rule 14 of the CENVAT Credit Rules, 2004 substituting “taken or utilised” by the term “taken and utilised” for the levy of interest being clarificatory in nature will apply retrospectively, allowed the appeal.
