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2011 (3) TMI 564 - CESTAT, NEW DELHIReversal of Cenvat credit - Penalty u/s 11AC - whether the Appellant had intention to evade the duty involved in the obsolete inputs and whether for imposing penalty under Section 11AC of the Central Excise Act intention to evade duty is required to be established - By no stretch of imagination it can be considered necessary as per Central Excise Rules or Cenvat Credit Rules that credit should be reversed immediately when an employee of an assessee notices defect in input and it is reported to his superior or the departmental head, in charge of stores - A short delay (no such delay is proved in this case) can not imply that there was an intention to evade duty by not reversing the credit taken on the input. - Appeal is allowed
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