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2014 (6) TMI 57 - AT - Central ExciseReversal of CENVAT Credit - Interest - Penalty - Whether the reversal of entire amount of CENVAT Credit availed on the common input services is enough compliance of the provisions of Rule 6; when an assessee manufactures and clears dutiable as well as exempted product - Held that:- though the appellant has produced some kind of evidence before us which would indicate that the appellant had started manufacturing the exempted cotton yarn from 18.01.2007, we find that the issue is unverifiable and the adjudicating authority has recorded that the appellant did not produce any evidence before him. Keeping in mind the elapsed time, we are of the view that if the appellant is directed to reverse this amount of Rs.1,22,606/-, it would meet the ends of justice and also the compliance of the law under Rule 6 of CENVAT Credit Rules, 2004. We direct the appellant to reverse an amount of Rs.1,22,606 within 30 days from the date of receipt - appellant also needs to be directed to pay interest on both the amounts i.e. Rs.3,26,554/- and Rs.1,22,606/-. Lower authorities will calculate the interest in accordance with the provisions of law and inform the appellant accordingly, and the appellant within 10 days of such amount being intimated, will pay the same into the Government treasury - However, penalty is set aside - Decided partly in favour of assessee.
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