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TMI Blog2017 (6) TMI 1137X X X X Extracts X X X X X X X X Extracts X X X X ..... reme Court] - interest waived. Penalty - Held that: - the issue whether 8% 10% the reversal is required in case of exempted goods supplied under N/N. 10/97 -CE was contentious. Initially the issue was decided in favor of the assessee in the case of Andhra Pradesh Paper Mills Ltd. [2004 (11) TMI 229 - CESTAT, BANGALORE] and subsequently the same was reversed by the Hon'ble Supreme Court in the case of Amrit Paper [2006 (7) TMI 7 - SUPREME COURT OF INDIA]. In this fact of the case, the penalty is not imposable - penalty waived. Appeal allowed - decided partly in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... the Order-in Original dt. 28.6.2006 filed an appeal before the Commissioner (Appeals), who vide order-in-appeal dt. 8.11.2006 which is the order impugned and upheld the demand however reduced the penalty to ₹ 50,000/- in each of the above two cases. 2. Shri Rajesh Ostwal, Ld. Counsel appearing on behalf of the appellant submits that in the light of the Hon'ble Supreme Court decision in Amrit Paper (supra), they are not contesting the demand of cenvat credit taken suo moto and subsequently reversed but the appellant is contesting the demand of interest and penalty. He submits that though the credit was taken suo moto but the same was not utilized therefore the interest is not chargeable. Since, there were divergent views initiall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Union of India Vs. Ind-Swift Laboratories Ltd. 2011 (265) ELT 3 (SC). As regard penalty, I agree with the submission of the Ld. Counsel that the issue whether 8% 10% the reversal is required in case of exempted goods supplied under Notification No. 10/97 -CE was contentious. Initially the issue was decided in favour of the assessee in the case of Andhra Pradesh Paper Mills Ltd. (supra) and subsequently the same was reversed by the Hon'ble Supreme Court in the case of Amrit Paper (supra). In this fact of the case, I am of the view that the penalty is not imposable. I therefore set aside the penalty of ₹ 50,000/- in each appeal imposed by the lower authority, the impugned order is modified to the above extent. The appeals are partly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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