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2016 (9) TMI 482 - AT - Central Excise100% EOU - Recovery of duty alongwith interest and penalty attributable to inputs - input, i.e., paper procured without payment of duty, used for manufacture of finished product i.e. printed books, sold in the DTA and not exported - pursuant to investigation, appellant deposited central excise duty attributable to inputs - Held that:- in absence of export of printed books, the duty foregone on procurement of the input, namely paper, shall not be eligible for the exemption contained in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001. Thus, duty demand confirmed by the authorities below, is in conformity with the statutory provisions. It is found that the amount deposited by the appellant before adjudication of the matter, was appropriated in the adjudication order towards duty liability. Since interest in the present case has not been deposited by the appellant, we are of the view that the interest for delayed payment of Central Excise duty has to be paid by the appellant. With regard to imposition of penalty, it is found that the issue involved in the case relates to interpretation of the Notification No. 22/2003 dated 31st March, 2003 and in an identical case, this Tribunal in the case of the appellant itself reported in [2010 (4) TMI 954 - CESTAT NEW DELHI] has set aside the penalty imposed on the appellant. Therefore, the penalty cannot be imposed on the appellant in the given circumstances of the case. - Decided partly in favour of appellant
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