2016 (6) TMI 401

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..... dit taken on two occasions and not with an intent to avoid the payment of duty. The admitted facts are that the amount along with interest so payable has been paid as pointed out by the Audit. As find that based on the facts as narrated above, no proceedings by way of issuance of notice is required in the present case in terms of sub-section (2 B) of Section 11A of the Central Excise Act, 1944. In the present case, the show cause notice issued after almost three years of Audit invoked extended period for demanding the amount, which is paid with interest by the appellant much before the issue of notice. As such, find that the impugned order is not sustainable inasfar as the penalty is concerned. The appeal is allowed to that extent. - E .....

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..... e demand and appropriated the amount already paid along with interest. He also imposed penalty equal to the duty in terms of Section 11 AC read with Rule 15(2) of the Cenvat Credit Rules, 2004. On appeal, the Commissioner (Appeals) vide the impugned order confirmed the original order. 3. Aggrieved by the said order, the present appeal is filed. 4. Ld. Counsel for the appellant submitted that though they have filed appeal on merit challenging the demand as well as penalty, he will restrict his main argument only against the imposition of penalty as due reversal of credit with interest has already been made by the appellant immediately after the Audit pointed out the error. It is the case of the appellant that when they cleared the inpu .....

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..... ant to follow the legal provisions relating to payment of amount equivalent to the credit taken. They have failed to do so and it is only because of Audit detected that they have paid the amount. Hence, the penal provisions are attracted in their case. 6. Heard both the sides and examined the appeal records. 7. The admitted facts are that the appellants cleared inputs as such, on which they have availed cenvat credit. The credit on inputs was availed on two different dates. Initially, on the main invoice and later on the additional amount based on supplementary invoice. When such inputs were cleared, they paid an amount equal to the credit taken for the first time without considering the credit taken on supplementary invoices. The ple .....

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