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2016 (11) TMI 1335 - AT - Central ExciseDemand u/r 25 of the Central Excise Rules, 2002 - challenge to benefit of Notification No. 56/2002-CE dated 14.11.2002. The said notification was amended in the year 2008 wherein the cash refund was restricted for 34% of the value addition - Held that: - I have gone through the show cause notice and the impugned order. In the show cause notice no mala-fide has been alleged against the appellant, therefore, no penalty can be imposed under Rule 25 of the Central Excise Rules, 2002. Admittedly, the provisions of section 11AC of the Act are missing, therefore, no penalty is imposable on them. I find that during the intervening period, the appellant was having sufficient balance in their cenvat credit account/PLA, therefore, they are not liable to pay interest during the intervening period in the light of the decision of Hon'ble High Court of Karnataka in the case of Bill Forge Pvt. Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT]. Further, I find that the appellants have filed their regular ER-1 returns on 08.02.2013 showing details of availment refund of duty paid through PLA in the intervening period. In that circumstance, a show cause notice was issued to the appellant on 26.02.2014 is time bared in the light of the above discussion. Therefore, I do not find any merit in the impugned order, the same is set aside. Appeal allowed - decided in favor of appellant.
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