2018 (7) TMI 1336 – CESTAT NEW DELHI – TMI – Demand of Interest and penalty – CENVAT Credit availed in respect of common services, which were relatable to their second unit, which was not a registered ISD, is reversed – Held that:- Reliance placed in the case of CCE & ST, LTU Vs. Bill Forge Pvt. Ltd. [2011 (4) TMI 969 – KARNATAKA HIGH COURT], where it is held that if the excess credit availed remained as paper entry and was not utilised, no interest liability would arise.
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Penalty – Held that:- This is a case of bona fide availment of credit and inasmuch as the issue also stands decided in favour of the assessee, it cannot be held to be a case of any mala fide so as to attract penal provisions – penalty also not warranted.
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Appe
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cannot avail the credit in respect of services relatable to their other unit. Accordingly, the appellant reversed the credit of ₹ 4,33,360/-, which was proportionately belonging to their other unit. 2. In the above background, proceedings were initiated against them for confirmation of interest and for imposition of penalty resulting in passing of the present impugned orders. 3. Ld. Advocate appearing for the appellants draws my attention to Tribunal s decision in the case of Doshion Ltd. Vs. CCE, Ahmedabad – 2013 (288) ELT 291 (Tri.-Ahmd.), wherein it was held that distribution of the credit without taking registration as input service distributed cannot be held to be as irregular. The said decision stands confirmed by the Hon ble Gu
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ms of the decision of the Hon ble Karnataka High Court s decision in the case of CCE & ST, LTU Vs. Bill Forge Pvt. Ltd. – 2012 (279) ELT 209 (Kar.). As regards penalty, he submits that inasmuch as issue on merits stands decided in their favour, it is not a case of any mala fide so as to impose penalty. 4. Ld. AR appearing for the Revenue reiterates the findings. 5. As the demand is not being challenged by the appellant, I uphold the confirmation of the same. As regards interest, I find that the lower authorities have relied upon the Hon ble Supreme Court s decision in the case of Indo Swift Laboratories which decision stands considered by the Hon ble Karnataka High Court in the case of Bill Forge Pvt. Ltd. (supra) and it stands held tha
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