Cenvat - service tax

"The Apex Court in the case of Ind Swift Labs (2011-TIOL-21-SC-CX) held that interest is payable from the date of taking credit, not utilizing it . The Supreme Court ruled that if the aforesaid provision [rule 14 of the CENVAT Credit Rules, 2004] is read as a whole we find no reason to read the word �OR� in between the expressions taken or utilized wrongly or has been erroneously refunded' as the word "AND". On the happening of any of the three circumstances such credit becomes recoverable along with interest."

The Central government was kind enough to amend Rule 14 of the CENVAT Credit Rules, 2004 by notification 18/2012-CE(N.T), dated 17th March, 2012 so as to substitute the word "OR" with "AND". In the result, from 17th March, 2012, interest is not payable u/s 11AA of the CEA, 1944 on CENVAT credit wrongly taken unless the same is utilized