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TMI Blog2018 (11) TMI 1372X X X X Extracts X X X X X X X X Extracts X X X X ..... erely a book entry. In the case of CCE vs. Bill Forge [2011 (4) TMI 969 - KARNATAKA HIGH COURT], the Hon'ble Karnataka High Court has held that if the credit was wrongly taken and not utilized and immediately reversed before the issuance of SCN, then the appellants are not required to pay interest and penalty. Demand of Interest and penalty not sustainable - appeal allowed - decided in favor of appellant. - E/20717/2018-SM, E/20718/2018-SM - Final Order No. 21666-21667/2018 - Dated:- 25-10-2018 - MR. S.S GARG, JUDICIAL MEMBER Mr. B. Venugopal, Advocate For the Appellant Mr. Gopakumar, AR For the Respondent ORDER Per: S.S GARG Appellants have filed these two appeals directed against the impugned order d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner (A) against the demand of interest and imposition of penalty of ₹ 5,000/- and department also preferred an appeal against the Order-in-Original against short imposition of penalty under Section 11AC of the Central Excise Act, 1944. The Commissioner (A) has rejected the appeal of the appellant but increased the penalty from ₹ 5,000/- to ₹ 1,79,190/- against which the appellants have filed these two appeals. 3. Heard both the parties and perused the records. 4. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the facts and the law. He further submitted that appellants have availed inadvertently 100% CEVNAT cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit account and therefore, they have not utilized the said CENVAT credit and it was merely a book entry. Further, I find that in the case of CCE vs. Bill Forge cited supra, the Hon'ble Karnataka High Court has held that if the credit was wrongly taken and not utilized and immediately reversed before the issuance of show-cause notice, then the appellants are not required to pay interest and penalty. By following the ratio of the said decision and also the ratio of the other cases cited supra, I am of the view that the impugned order demanding the interest and penalty is not sustainable and therefore, I set aside the impugned order by allowing both the appeals of the appellants. (Operative portion of the Order was pronounced in Open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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