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2019 (2) TMI 940 - CESTAT ALLAHABADCENVAT Credit - inputs utilized in the manufacture of Plain Lateral Pipes and Tubes - classification of pipes and tubes - Held that:- Revenue is silent about the duty paid by the appellant on the said Plain Lateral Pipes and Tubes. Admittedly the said duty stands paid by them by utilizing the credit, which gets reversed at the time of payment of duty. In such circumstances the further reversal of the credit cannot be sought by the Revenue. If the Revenue was of the view that the said Pipes and Tubes were also exempted, and the appellant is not entitled to avail the credit, then the duty paid by the appellant on their final product was required to be refunded to them or to be adjusted or neutralized against the demand of credit being made. As such, the entire situation is revenue neutral - demand set aside. Demand of interest and penalty - Held that:- here is no dispute about the fact that the wrongly availed credit was not being used by the assessee inasmuch as there was sufficient balance in their credit account at the time of reversal of the excess availed credit. The Hon’ble Karnataka High Court in the above-referred judgement of Bill Forge (P) Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT] has held that in case the excess and wrongly availed Cenvat credit does not stand utilized, and is subsequently reversed, the same would not call for any interest liability. Interest set aside - Revenue has also not advanced any evidence to the contrary to show that such credit was being availed with a mala fide intention. The demand also stands raised by invoking the longer period of limitation. However, as the appellant is not disputing the said payment by them by reversing the credit, we, while upholding the said demand, set aside the penalty imposed upon the appellant. Demand upheld - interest and penalty set aside - appeal allowed in part.
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