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2016 (4) TMI 976 - AT - Central ExciseDemand of interest and imposition of penalty u/s Section 11AB and 11AC respectively - Cenvat credit availed to the extent of 100% in respect of Capital goods instead of 50% - Held that:- subsection (1) of Section 11A provides for issuance of show cause notice and subsection (2) provides for determination of duty. In the present case neither any show cause notice was issued for proposing any demand of duty/Cenvat nor any determination of duty / Cenvat was made under subsection (2). Issuance of show cause notice and determination of demand is the main ingredient in order to demand interest and penalty under Section 11AB and 11AC respectively. In absence of observance of Section 11A (1) and (2) the interest and penalty cannot be imposed. Therefore, interest and penalty are unsustainable. - Decided in favour of appellant
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