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2015 (4) TMI 419 - AT - Central ExciseCENVAT Credit - removal of inputs as such - appellant having availed CENVAT Credit of Special Additional Duty (SAD) did not reversed the same while removing the components to their co-makers. - credit was reversed later before issue of SCN - demand of interest and penalty - Held that:- show-cause notice had invoked wrong provisions to recover the short paid SAD. The impugned order confirmed the proposal to demand irregular cenvat credit taken by the assessee. The amount involved is not irregular credit nor so utilized. We find that the demand of duty of ₹ 2,12,40,288/- and penalty imposed are not in accordance with law, since the same has been ordered invoking inapplicable provisions. We vacate the demand of so called irregular cenvat credit availed by the assessee. Consequently, demand of interest also stands vacated. Reliance placed on the case of LG Electronics Pvt. Ltd. (2010 (3) TMI 536 - CESTAT, MUMBAI) is correct. On reading of the entire case as reported we find that the facts are identical to the facts and issue in hand. It is to be noted that in the case of LG Electronics Pvt. Ltd. (2010 (3) TMI 536 - CESTAT, MUMBAI) the demand was raised under the same proviso i.e. Rule 14 of Cenvat Credit Rules, 2004 read with the provisions of Section 11A(1) of the Central Excise Act, 1944 invoking extended period by alleging suppression of facts with intention to evade duty. - In yet another case of Cosmo Films Ltd (2009 (10) TMI 300 - CESTAT, MUMBAI), the same issue of non-discharge of 4% of CVD was in dispute. The assessee in that case has pleaded that the mistake was bonafide and credit was available to the sister unit hence the issue is of revenue neutral situation. - impugned order is unsustainable and is liable to be set aside - Decided in favour of assessee.
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