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2011 (3) TMI 512 - HC - Central ExcisePenalty and interest - Wrongful availment of modvat/cenvat credit - Since, the assessee has not maintained separate accounts of either purchase of inputs which are utilised in the manufacture of exempted goods or dutiable goods - It is also not in dispute that the assessee has wrongfully availed modvat/cenvat credit - On being pointed by way of a Show Cause Notice, they have promptly reversed the credit - They also paid a substantial amount of duty payable even before the order in original was passed. After the order was passed, within the stipulated time, the balance duty leviable has been paid - Though the amendment was retrospective in nature, the penalty being penal in character cannot be retrospectively imposed and therefore, the tribunal has rightly set aside the order imposing the penalty - Hence, the assessee had reversed the credit, paid the duty in respect of which wrongly modvat/cenvat credit was claimed within the time stipulated, the liability to pay the interest does not arise - Decided in favour of assessee.
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