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2013 (4) TMI 356 - CESTAT AHMEDABADLevy of interest and penalty on Wrong availment of cenvat credit on inputs supplied by 100% EOU - the appellant had reversed the cenvat credit on 04/09/2009 when second audit checking of the documents took place and before the issuance of the Show cause notice. - first audit of the appellant took place on 17th to 19th August, 2009 and the audit party did not notice any thing wrong in availment of cenvat credit. - Held that:- The Division Bench of the Tribunal in the case of Rajasthan State Warehousing Corp. (2011 (3) TMI 251 - CESTAT, NEW DELHI ) had in an identical situation held that when the demand for the extended period is not invocable, no demand for interest, imposition of penalty be sustained - In the case in hand, the law laid down by the Honble High Court of Karnataka and the Division Bench of the Tribunal would squarely apply as the appellant could not have been saddled with duty. The appellant has himself voluntarily paid the duty before the authority and also reversed the credit on being pointed out. This is a fit case wherein interest liability fastened on the appellant and the equivalent amount of penalty imposed under Section 11AC of the Central Excise Act, 1944 needs to be set-aside - The impugned order to the extent it challenges demand of the interest and imposition of penalty is liable to be set-aside and is set aside - The appeal is allowed to the extent as indicated herein-above.
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