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2016 (11) TMI 185 - AT - Central ExciseReversal of irregular credit - Interest and penalty for taking the Cenvat credit wrongly - Before the credit was taken or utilized, the mistake was brought to its notice. The assessee accepted the mistake and immediately reversed the entry - Held that: - the issue is no more res intera and is settled in favour of the appellant by a decision of the Hon'ble Karnataka High Court in the case of CCE &ST., LTU, Bangalore Vs. Bill Forge Pvt. Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT] where it was held that interest and penalty is not imposable where credit wrongly availed has been reversed prior to utilization. The appellant had merely availed the credit and reversed the same before utilizing the availed credit for remittance of duty, interest liability would not arise - no interest is demandable from the appellant and no penalty can be imposed - appeal allowed - decided in favor of appellant.
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