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2016 (11) TMI 931 - AT - Central ExciseInterest and penalty for taking the Cenvat credit wrongly - suo moto reversal of credit before utilisation of the same - whether the appellants are liable to pay interest on the said credit which was reversed? - Held that: - it is seen that the appellant has reversed an amount of ₹ 6,57,169/which pertains to credit availed on capital goods/ventilation systems. The invoices produced by the appellant also evidence that these goods are classified under Chapter 84. In such circumstances, I am of the view that in the interest of justice, the appellant should be given a chance to establish and prove that the credit of ₹ 6,57,169/- is eligible for the reason that it is availed on ventilation systems. On this point, the matter has to be remanded to the adjudicating authority. However, the main issue whether appellant is liable to pay interest on the credit wrongly availed but reversed prior to utilization, is settled by the judgments relied upon by the appellants in the case of CCE Vs. Bill Forge pvt. Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT]. In view thereof, I hold that the appellants are not liable to pay interest as well as the penalty which is confirmed in the impugned order. Therefore I set aside the impugned order to the extent of demand of interest and imposition of penalty The appeal is partly allowed as above and partly remanded for the limited purpose of adjudicating the issue whether the appellants are elgibile for the credit of ₹ 6,57,169/- availed on ventilation systems.
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