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2015 (11) TMI 765 - AT - Central ExciseBenefit of CENVAT credit -credit earned in the subsequent months cannot be used for payment of duty for the previous month - Held that:- Appellants have been utilizing excess credit for a period spread from June 2007 to April 2008 and such mis-utilization was for a number of months during the said period. As such, the appellants plea that such wrong utilization had occurred on account of the accountant being new cannot be appreciated. However, I also find force in the appellants contention that they do not gain anything by such early utilization of the credit inasmuch as the credit, as utilized would, not be available to them in the next subsequent month. Such wrong utilization invites confirmation of interest which is also required to be considered as penal in nature. However, admittedly, there has been contravention of law by the appellant repeatedly which in my view would invite some penal action against them. As such extending the benefit of doubt and after taking note of the fact that they were having sufficient balance in their PLA during the months of default and keeping in mind that appellant has already paid interest to the extent of ₹ 7,176/-, I impose a penalty of ₹ 10,000 - no reasons to confirm the demand. - Decided partly in favour of assessee.
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