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2019 (7) TMI 1807 - AT - Central ExciseCENVAT Credit - inputs/capital goods - Corrugated sheet/Serrated Adjustable classifiable under Chapter 68 of the Central Excise Tariff Act - Credit reversed before issuance of SCN - Levy of interest - imposition of penalty u/r 15(2) of Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 - HELD THAT:- The appellant has already reversed the amount of cenvat credit before issuance of the show case notice. However they have not paid any interest on the same. Interest being a statutory liability, is to be paid by the appellant as the Cenvat credit was wrongly availed by the appellant and the same is not in dispute at all. Penalty - HELD THAT:- The disputed amount had been paid before the issuance of the show cause notice. Therefore, the payment of duty in the instant case before issuance of the show cause notice is a sufficient compliance. Additionally, the Revenue has not been able to prove beyond reasonable doubt the presence of fraud, collusion, willful misstatement or suppression of facts on the part of the appellant. Therefore, imposition of penalty under Rule 15(2) read with section 11AC of the Act is unwarranted. The penalty imposed under Rule 15(2) of Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 is set aside - Appeal allowed in part.
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