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TMI Blog2024 (2) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... ed goods and availment of credit on the entire input and input services commonly used for manufacture of dutiable and exempted goods is very well on record and known to the department. Accordingly, there is no suppression of fact on the part of the appellant. Hence, the entire demand is prima-facie time bar. However, the appellant have admittedly paid the amount of Rs. 60,15,116/- and they are only contesting the penalty. Though the demand is prima facie time bar but since the appellant have admittedly paid and not contesting such payment, the demand to the extent of Rs. 60,15,116/- is upheld and payment made thereof by the appellant is maintained. However, the appellant is not liable for any penalty. The penalty is set aside. Needles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand of interest was also confirmed and equal amount of penalty was also imposed. Being aggrieved by the Order-In-Original, the appellant filed the present appeal. 2. Shri Shailesh Sheth, Learned Counsel appearing on behalf of the Appellant-Assessee submits that even though the demand is prima facie time bar but the appellant have admittedly paid the amount of proportionate credit of input and input services attributed to the exempted goods. Therefore, the penalty should not be imposed. He submits that it is a settled law that on reversal of proportionate credit no demand under Rule 6 (3) equal to 5% or 6% of value of the exempted goods is sustainable. He placed reliance on the following judgments: - Mercedes Benz India (P) Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Revenue reiterates the finding of the impugned order. 4. We have carefully considered the submission made by both sides and perused the records. We find that the limited issue of penalty to be decided in the facts and circumstances of the present case. We find that the appellant have strong prima facie case on time bar, despite that the appellant have paid the proportionate credit of Rs. 60,15,116/- and despite the demand being time bar they are not contesting the payment of Rs. 60,15,116/- but they are only seeking a lenient view as regard imposition of equal penalty. We find that the fact regarding manufacture and clearance of dutiable as well as exempted goods and availment of credit on the entire input and input services commo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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