Bangalore International Airport Ltd. v. CCT

FINANCE ACT, 1994

--Demand of interest and penalty --Wrongful availment of Cenvat credit----Where assessee had reversed the credit without utilization the same, then interest and penalty could not be levied.--Revenue imposed interest and penalty on the ground that the assessee had wrongly availed of Cenvat credit. Assessee reversed the wrongly availed Cenvat credit and the same was disclosed in the service tax returns. It contended that Cenvat credit availed of by it was not utilized as there was sufficient balance of credit available in the Cenvat account and therefore, the question of interest and penalty did not arise. Held: In view of Decision of High Court in the case of Commissioner of Central Excise v. Bill Forge Pvt. Ltd. [2012 (26) STR 204 (Kar.) : 2012 TaxPub(ST) 0438 (Karn-HC)], if the credit availed of was reversed without utilization, then interest and penalty could not be levied.