2016 (6) TMI 1089

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..... ts. In that circumstance, reversal of credit shall be sufficient and no penalty is imposable on the appellant. In this case also the appellant has already reversed the whole credit availed by them instead of prorate credit, the same is sufficient. In the circumstances, we set aside the impugned order demanding an amount of 8% on the clearance of exempted goods. Reversal of the credit made by the a .....

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..... appellant procured inputs and availed credit thereon. As the appellant was not maintaining separate accounts for inputs used for manufacture of dutiable/exempted final products, a show cause notice was issued to the appellant to demand an amount at the rate of 8% of their clearance of exempted goods. The show cause notice was adjudicated, demand on exempted final products at the rate of 8% was co .....

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..... inance Act, 2010. 4. On the other hand, learned AR opposed the contention of the learned Counsel and reiterated the findings in the Impugned order; He submitted that interest on the demand is recoverable from the appellant under section 11AB of Central Excise Act, 1944 read with Rule 571 and 57H of the erstwhile Central Excise Rules, 1944. The appellant is liable to penalty under section 11AC .....

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