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2016 (4) TMI 1224 - AT - Central ExciseReversal of CENVAT credit - Rule 3(5) of CCR 2004 - freight involved on purchase of inputs subsequently removed as such - Held that: - reliance placed in the case of Mercedes Benz India Private Ltd [2015 (8) TMI 24 - CESTAT MUMBAI], where it was held that when the appellant have categorically by way of their intimation opted for option provided under sub-rule (3)(ii), how Revenue can insist that option (3)(i) under Rule 6 should be followed by the assessee. - the appellant have rightly exercised option before the close of the financial year on 26/3/12 and paid the appropriate duty by way of debit in the Cenvat credit in terms of rule 6(3A) read with Rule 6(1)(ii). So far the question of interest is concerned, in clause (C) of sub Rule (3A) of Rule 6, it is provided that the manufacturer of goods shall determine finally the amount of Cenvat credit attributable to the exempt goods and exempt services for the whole financial year - clause E provides the manufacturer shall in addition to the amount short paid be liable to pay interest @ 24% per annum from the due date, that is, 30th of June, till the date of payment, where the amount short paid is not paid within the said due date. The appellant is entitled to the benefit of Rule 6(3)(ii) read with clause (3A) of the CCR 2004 - So far the penalty is concerned, the issue being wholly interpretational, it is held that there is no suppression of facts on the part of the appellant and accordingly, penalties imposed under all Sections, are deleted. Appeal allowed by way of remand for the verification of the amount to be reversed along with interest.
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