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2016 (1) TMI 433 - AT - Central ExciseDemand of interest and penalty - Clandestine removal of goods - Revenue neutrality - Held that:- Appellants removed the semi-finished goods continuously for about three years without payment of duty and the input was cleared as such without reversal of credit in violation of the Central Excise Rule 2002 and the Cenvat Credit Rules 2004. There is no dispute that the appellant was liable to pay duty and reverse credit at the time of clearance of semi-finished goods and therefore, the demand of interest is justified. The demand of interest cannot be waived on the ground of the Revenue neutrality. - It is revealed from the Adjudication order that the appellant submitted the statement showing month-wise details of payment of duty from Cenvat account and PLA in respect of both the units during the material period. It is also recorded that the sister unit had paid more duty from the PLA than the Cenvat account. The appellant claimed that there is no suppression of the fact with intent to evade any payment of duty as it is a case of Revenue neutrality. The Adjudicating Authority observed that there is some merits in the argument of the appellant. Hence, the imposition of penalty under Section 11AC is not warranted - demand of duty alongwith the interest is upheld and the penalty is reduced - Decided partly in favour of assessee.
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