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2016 (5) TMI 657 - AT - Central ExciseInvocation of extended period of limitation - Demand of interest raised after one year - time barred - Entire amount of Cenvat credit wrongly taken was suo moto paid as soon as mistake was pointed out themselves - Department argued that the period of 1(one) year, referred to in Sub-Section (1) of Section 11A, is to be counted from the date of intimation given by the Appellant regarding payment of amount by relying on the provisions of section 11A(2B) of Central Excise Act, 1944. Held that:- as per proviso to Section 11A(2B), period of 1(one) year referred to in Sub-section (1) of Section 11A shall be counted from the date of receipt of the information/intimation from an assessee. Therefore, the demand of interest has to be considered as demand of duty to which Section 11A ibid is applicable. Having said that relevant date for calculating period of 1(one) year for demanding interest will have to be calculated w.e.f. 26.06.2009 when Appellant intimated the Department about the payment of duty. The Show Cause Notice was issued on 23.06.2010 which is within a period 1(one) year from the date of intimation (26.06.2009) given by the Appellant. Accordingly it is held that demand issued to the Appellant is not time barred and has been correctly confirmed by the First Appellate Authority. Imposition of penalty - Appellant contended that maximum penalty under relevant Cenvat Credit Rules would not exceed ₹ 2,000/- as per amendment carried out on 11.05.2007 - Held that:- penalty of ₹ 10,000/- imposed by the First Appellate Authority is reduced to ₹ 2,000/-. - Decided partly in favour of appellant
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