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TMI Blog2007 (8) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... ation & before SCN – , Bonafide belief about eligibility for credit Interest is payable on credit taken erroneously but penalty is not imposable. X X X X Extracts X X X X X X X X Extracts X X X X ..... edit admissible, the appellants reversed the wrong credit of Rs. 15,07,474/- on 23-10-2003. Show Cause Notice dated 16-4-04 was issued to the appellants proposing to demand interest of Rs. 1,24,150/- and to impose penalty. The original authority dropped the proceedings. On appeal filed by the Department, the Commissioner of Central Excise (Appeals) confirmed the' demand of interest of Rs. 1,24,150 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch cases the wrong credit could be recovered from the manufacturer along with interest. However, as the excess credit had been reversed before the Show Cause Notice-was issued, he prayed that the penalty imposed on the appellants may be vacated. 3. Ld. SDR reiterates the findings contained in the impugned order. 4. After carefully considering the case records and the submissions made by both sid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants had taken the credit on the bona fide belief that they were eligible for the same. They did not utilize the credit and reversed the excess credit immediately on receiving intimation about the error they had committed. This was much before the issue of Show Cause Notice. In the circumstances in view of the ratio of the Rashtriya Ispat Nigam Ltd. v. CCE [2003 (16 E.L.T. 285 (Tri-. Bang)], I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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