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2015 (10) TMI 1331 - AT - Central ExciseReversal of CENVAT Credit - Imposition of penalty - Held that:- Appellant took a credit of ₹ 32,19,567/- as per his misunderstanding of Rule 3(7) of the Cenvat Credit Rules, 2004, as per prescribed farmula. However the same was found to be admissible to the extent of only ₹ 27,53,997/-. The same was paid by the appellant promptly on 04.9.2008 much before the issue of Show Cause Notice dt 12.11.2009. The difference in the amount of duty demand of ₹ 32,19,567/- in the Show Cause Notice and actual amount of ₹ 27,53,997/-, subsequently found to be payable, indicate that there was a confusion even in the mind of Department regarding method of calculating admissible Cenvat Credit under Rule, 3(7) of the Cenvat Credit Rules 2004. The inadmissible credit was also paid one year before the issue of show cause notice. As per para 6.4. of the OIA dt 23.12.2010 passed by the first appellate authority credit taken wrongly was also not utilized by the appellant. In the present facts of circumstances, it is not a fit case for imposition of penalty under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 - Decided in favour of assessee.
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