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2019 (3) TMI 1375 - CESTAT BANGALORECENVAT credit - provision of taxable as well as exempt service (trading) - non-maintenance of separate records - Rule 6(3)(1) of CENVAT Credit Rules - demand of interest and penalty - Held that:- Prior to the amendment, the recovery of interest was permissible when CENVAT credit has been wrongly taken or utilized and in the present case, the appellant reversed the CENVAT credit attributable to trading activity and there happened to be a short-reversal amounting to ₹ 29,17/911/- which was reversed by 17/09/2014 - as per the documents placed on record including various returns and CENVAT credit account, which shows that the closing credit in the CENVAT credit account was much more than the total amount of credit as wrongly availed and further the said credit was not utilized by the appellant. In view of the decision of Karnataka High Court in the case of Bill Forge Pvt. Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT] which clearly hold that if the CENVAT credit wrongly availed is reversed before utilization, then the assessee is not liable to pay interest and penalty. Appeal allowed - decided in favor of appellant.
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