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2016 (11) TMI 54 - AT - Central ExciseReversal of CENVAT credit - whether interest is liable on the cenvat credit which was reversed and whether the appellant is liable to penalty under Rule 15(1) of the Cenvat Credit rules, 2004? - Held that: - the unit had not commenced production when the investigation started and hence there was no clearance from the factory. As there was no clearance from the factory, there was no question of utilization of the cenvat credit availed by the party - reliance placed on the decision of the case GTL Infrastructure Ltd. Vs. CCE [2014 (9) TMI 647 - CESTAT MUMBAI] where it was held that the appellants are not liable to pay interest for wrongful availment of Cenvat Credit which has been reversed before utilization by the appellant - the demand of interest in this case is not proper and justified. Levy of penalty - reliance placed in the decision of CCE Madurai Vs. M/s Strategic Engineering (P) Ltd. [2014 (11) TMI 89 - MADRAS HIGH COURT] where it was held that mere taken of CENVAT credit facilities is not at all sufficient for claiming of interest as well as penalty - the appellants are not liable to penalty. Appeal allowed - decided in favor of appellant.
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