2016 (8) TMI 752

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..... CE. It is a fact that the appellant has reversed the credit before utilization of the same and a small portion of the cenvat credit was utilized but the same was reversed along with interest before the issue of show-cause notice and in view of the judgment of this Tribunal in the case of Kumar Organics Product Ltd. Vs. CCE, Bangalore [2014 (12) TMI 273 - CESTAT BANGALORE], the appellant is not liable to pay interest as well as penalty. Therefore, by following the ratio of decisions cited supra, impugned order is not sustainable in law. - Decided in favour of appellant with consequential relief - E/486/2009-SM - Final Order No. 20645/ 2016 - Dated:- 19-8-2016 - Shri S. S. Garg, Judicial Member Shri Raghavendra, Advocate For the App .....

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..... ible credit taken wrongly, the appellant has overdrawn an amount of ₹ 3,42,025/- (Rupees Three Lakhs Forty Two Thousand and Twenty Five only) during January 2006 and February 2006 in the cenvat credit account. However on 27.03.2006 when the preventive officers visited the unit and checked the accounts and told the appellant that he has wrongly taken the cenvat credit. Then on the same day the appellant reversed the credit balance available amounting to ₹ 16,02,274/- (Rupees Sixteen Lakhs Two Thousand Two Hundred and Seventy Four only) and the balance amount of ₹ 3,49,380/- (Rupees Three Lakhs Forty Nine Thousand Three Hundred and Eighty only) was credited under TR6 challan dated 18.04.2006. The appellant also credited a su .....

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..... ntral Excise Act 1944. He also submitted that the appellant had reversed the credit before its utilization and wherever the credit had been utilized, the same was reversed along with interest and hence the question of demand of interest in respect of the credit reversed before utilization and imposition of penalty on the ground of suppression of facts does not arise. In support of his submissions he relied upon the following authorities: (i) JK Tyre Industries Ltd. Vs. ACCE 2016-TIOL-1781-CESTAT-BANG (ii) CCE, Madurai Vs. M/s. Strategic Engineering (P) Ltd. 2014-TIOL-466-HC-MAD-CX-2014 (310) ELT 409 (Mad.) (iii) TNT (India) Pvt. Ltd. Vs. CCE ST, Bangalore 2016 (42) STR 285 (Tri.-Bang.) (iv) CCE ST, LTU Bangalore V. .....

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