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2015 (10) TMI 1235 - AT - Central ExciseDenial of Exemption claim - Non maintenance of separate account - Rule 6(2) of Cenvat Credit Rules 2004 - Held that:- During the intervening period they were having sufficient balance in their Cenvat Credit account to meet the liability of duty confirmed by way of adjudication order. If it is so then interest is not payable by the appellant as held by the Hon'ble High Court of Karnataka in the case of Bill Forge Pvt. Ltd. (2011 (4) TMI 969 - KARNATAKA HIGH COURT). Therefore, demand and interest is set aside. The contention of the appellant that they have not paid the amount of 10% of the value of exempted final product and taken Cenvat Credit twice wrongly under bonafide belief is not acceptable as appellant are manufacturing excisable goods and when they are clearing exempted final product from their factory they are required to pay 10% of the value of the said goods. These provisions are very clear. Therefore, penalty under section 11AC is rightly imposed on the appellant and same has been reduced by the Ld. Commissioner to the extent of 25% of the duty as they have paid the entire amount of duty before issuance of show cause notice. - Decided partly in favour of assessee.
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