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2016 (2) TMI 719 - AT - Central ExciseDemand of interest - Taking suo-moto credit of duty paid earlier for with refund was sought for - Held that:- As regard the refund application, the applicant has filed refund claim immediately after settling the dispute of classification vide their application dated 20/2/1997, which was disputed and matter of the refund was finally decided by this Tribunal vide Order dated 20/8/2008 thereafter it is the department who was supposed to grant the refund by implementing this Tribunal's order. However, the appellant had taken suo moto credit. In view there is no provision in Law to take suo-moto credit of any amount paid during the litigation of the matter, the only course of action is to seek refund under Section 11B. However, refund application was already filed with the department and it was not processed. In view of this Tribunal order dated 24/1/2008 there is no dispute that appellant is entitle for refund alongwith consequential relief. In view of this fact, direct appellant to reverse the Cenvat credit taken suo moto by them and the Adjudicating authority is directed to sanction the refund claim in accordance with law. Taking into consideration the facts and the circumstances of the case, since the appellant was entitled to refund after Tribunal order dated 24/1/2008 it is a case of Revenue neutral therefore interest and penalties are dropped. Due to peculiar facts involved in the case, since appellant had taken credit and enjoyed credit, they are not entitle for the interest only for the period i.e. from the date of taking suo moto credit till the sanction of refund claim
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