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2012 (2) TMI 439 - AT - Central ExciseReversal of CENVAT Credit - Confirmation of interest and penalty - Held that:- As such the Explanation-II read with Rule 14 which in turn refers to the provisions of Section 11AB, the non-payment of the credit amount would result in confirmation of interest against the assessee. When the law itself provide for confirmation of interest, I find no reasons to accept the appellants’ plea for setting aside the interest confirmation - appellants are liable to pay interest on the late reversal of Modvat Credit - Following decision of Ind-Swift Laboratories Ltd. [2011 (2) TMI 6 - Supreme Court] - confirmation of interest is upheld. The appellants were admittedly clearing their final exempted products on payment of 10% of the value of the same in terms of provisions of Rule 6(3)(b). Proper returns were being filed by them. The mistake came into notice of the Revenue only as a result of audit. I find that the this is a genuine mistake without any colour of suppression or mis-statement on the part of the appellants. As such I find that the penalty of Rs. 1 lakh imposed upon the appellants is not justifiable, the same is accordingly set aside - Decided partly in favour of assessee.
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