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2016 (1) TMI 695 - AT - Central ExciseReversal of CENVAT credit - calculation of interest - amount of CENVAT credit attributable to inputs used in the exempted goods - Held that:- The appellant has already reversed ₹ 1,90,160.91 which is attributable to the inputs used for manufacture of goods cleared under exemption. Provisions of Rule 6(3) are applicable in this case and the assessee having deposited an amount of ₹ 2,43,600/- on the direction of the Tribunal, they can be extended the benefit provisions of Rule 6(3), regarding the procedure rule followed or opt to reverse the CENVAT Credit attributable to CENVAT Credit. This Tribunal in the case of Mercedes Benz India Ltd. [2015 (8) TMI 24 - CESTAT MUMBAI] has held that these are procedures and non-compliance can be at the most procedural lapse. Thus the proposition is accepted that the amount to be reversed is an amount of CENVAT Credit attributable to the inputs consumed in the manufacture of finished goods, accordingly allow the appeal filed by the appellant to that extent and hold that the lower authority shall work out the interest payable on amount of ₹ 1,90,160.91 and adjust the amount of CENVAT Credit to the already paid of ₹ 2,43,600/- and interest thereof, from the deposit already made by the appellant on the direction of the Tribunal and if any interest is recoverable the same be recovered from the appellant. As regards the penalty, it is held that in the facts and circumstances of the case the same is set aside.
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