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2019 (12) TMI 784 - CESTAT KOLKATACENVAT Credit - recovery of irregular credit belonging to another unit of the appellant alongwith interest and penalty - period 2013-14 and 2014-15 - whether the Appellant is required to again reverse the full amount of Cenvat credit on account of ineligibility of Cenvat credit availed by the Appellant during the period in which the reversal of Cenvat credit as per the procedure laid down Rule 6(3) (b) of the Cenvat Credit Rules, 2004 for proportionate reversal of Cenvat credit during the said period has already been done by the Appellant? HELD THAT:- The Appellant has produced a CA certificate showing the reversals made for the FY 2014-15 on account of following the procedure as per Rule 6(3) of the Cenvat Credit Rules, 2004. Also a verification report as submitted by the Range office of the Appellant is placed on record which shows that the Appellant has actually reversed Cenvat credit following the said process for FY 2014-15 - From the above noted facts, it can be found that the Appellant cannot be asked to pay more than what it has actually availed. Appellant cannot be asked to reverse more than the actual Cenvat credit availed by the Appellant and based on the CA certificate and Range report there is no doubt as to the fact that the Appellant has actually followed the process of proportionate reversal under Rule 6(3) of the Cenvat Credit Rules, 2004 - demand set aside. Penalty U/s 11A - HELD THAT:- The disputed amount had been paid before the issuance of the show cause notice, and the entire amount was paid alongwith interest. Therefore, the payment of duty in the instant case should have been treated as payment of central excise duty under Section 11A (2B) of the Act and the show cause notice should not have been issued. Penalty u/s 11AC - HELD THAT:- The Revenue has not been able to prove beyond reasonable doubt the presence of fraud, collusion, willful misstatement or suppression of facts on the part of the appellant. Therefore, imposition of penalty under Section 11AC of the Act is unwarranted. Appeal allowed - decided in favor of appellant.
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