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2015 (10) TMI 1256 - AT - Central ExciseDenial of CENVAT Credit - Imposition of interest and penalty - Held that:- Para 4 of the show-cause notice makes allegation that there was utilisation of Cenvat credit of ₹ 9,14,269/- of Additional Duty of Customs taken. But taking of such credit is not permissible. In the case of Bombay Dyeing(supra) , it was the observation of the Supreme Court that unless the credit is utilised there shall be no payment of interest. But such proposition of law was not cited before apex court while deciding the case of Indswift . For no utilisation of Cenvat credit, there shall not be payment of interest. Therefore, learned Adjudicating authority is directed to make a limited exercise to verify the quantum of the credit utilised and calculate interest thereon and direct the appellant to pay the same. The payment of interest shall be subject to adjustment if any already paid by the appellant. Therefore, the matter is remitted back to the learned Adjudicating authority to grant fair opportunity of hearing to the appellant on such limited count. - Since there is confusion in law as to the admissibility of the credit and also utilisation thereof, there shall not be penalty. - Appeal disposed of.
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