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2015 (10) TMI 152 - AT - Central ExciseWrongful availment of CENVAT Credit - Interest u/s 11AB - Penalty u/s 11AC - Held that:- It is seen from the show cause notice that the appellant reversed the credit in the monthly ER1 return which was audited by the Central Excise audit party during the period 2004-2006. The Central Excise audit party after examining the ER1 return, detected the non-payment of interest. Show cause notice was issued on 8.8.2011 after more than 4= years. The Adjudicating Authority had given a clear finding that there is no suppression of fact with intent to evade payment of duty and dropped the penalty under Section 11AC of the Act. - liability of the payment of interest under Section 11AB linked with sub section (2) or (2B) of Section 11A where the limitation is prescribed. In the present case, the demand notice was issued beyond the period of limitation as prescribed under Section 11A (2B) of the said Act and therefore the demand of interest could be not sustained. - Tribunal in the case of Gujarat State Fertiliser Co Ltd (2013 (9) TMI 581 - CESTAT AHMEDABAD) on the identical situation set aside the demand of interest as time barred. - impugned order to the extent of demand of interest is set aside. - Decided in favour of assessee.
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