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2011 (8) TMI 988 - CESTAT BANGALOREReversal of CENVAT Credit - Intention to evade duty - Irregular utilization of CENVAT Credit - Held that:- appellant becomes liable to pay interest on the amount of CENVAT credit reversed by them after taking it wrongly in their CENVAT account and such interest should be paid for the period from the date of taking of the credit to the date of its reversal - liability to pay interest for the delayed payment would not arise unless the credit of duty entered in the account books was duly taken to discharge the duty payable. No credit was taken at all by the appellant and hence the question of payment of interest does not arise. In this context, it is also pertinent to note that the credit reversed by Unit-I is undisputedly available to Unit-II. Both the units are owned by the appellant. Hence it cannot be reasonably presumed that Unit-I had any intention to evade payment of duty through irregular availment and utilization of CENVAT credit. The finding of the original authority that what was done by Unit-I during the period of dispute could, at best, be an unintended error without mala fides appears to be reasonable - Decided in favour of assessee.
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