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2015 (10) TMI 1539 - AT - Central ExciseLevy of penalty where duty has been paid with interest before issuance of SCN - Reversal of CENVAT Credit - Written off value of certain inputs - held that:- Appellant has paid amount of ₹ 9,90,630/- alongwith interest as per their calculation immediately after pointed out by CERA audit team and intimated to the department. In my view the act of the appellant regarding the payment of Cenvat amount alongwith interest without any contest is covered by subsection (2B) of Section 11A(1), according to which if the duty amount alongwith interest is paid, no show cause notice should be issued. In this position since show cause notice should not have been issued the penalty could not have been imposed. Considering overall facts and circumstances of the case, I am of the view that penalty commensurate to the amount of Cenvat Credit of ₹ 9,90,630/- is not sustainable therefore the same is set aside. However, I agree with the ld. Commissioner (Appeals) that total demand of ₹ 11,32,147/- sustainable accordingly appellant is directed pay difference Cenvat amounting to ₹ 1,41,517/- alongwith interest and also penalty of equal amount of ₹ 1,41,517 - Decided partly in favour of assessee.
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