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2015 (5) TMI 981 - AT - Central ExciseCENVAT Credit - whether there was any malafide on the part of the assessee to avail the credit in respect of the exempted goods also - Held that:- Availment was with the due knowledge of the Revenue inasmuch as the same was being reflected in their statutory records as also in returns. This was an action of ignorance on their part and not being aware of the law. Inasmuch as it was being availed with the knowledge of the Revenue by reflecting the same in the statutory records and inasmuch as they deposited the entire amount along with interest on being pointed out by the Revenue, the situation as envisaged under Section 11A (2B), would prevail. In such a scenario the Revenue should not have issued any show-cause notice - payment of interest by the appellant is in fact penal in nature and is required to be considered as a substitute for the contravention committed by them. The provisions of Section 11A (2B) actually covers such situations only. In my view the said Sections stand introduced by the Legislature so as to avoid and reduce litigation. If the Revenue is still insisting on issuing show-cause notice in such cases, the entire purpose of the said Section gets defeated. - Penalty is set aside - Appeal disposed of.
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