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2016 (12) TMI 708 - AT - Central ExciseExtended period of limitation - ailing input services for transportation of inputs/capital goods into their factory - manufacture of exempted goods - Held that: - The assesse has reversed the irregularly availed credit before utilisation. The same was reversed prior to issuance of show cause notice. The issue is whether the assessee is liable to pay interest when the credit is reversed before utilisation. The issue is settled in the cases of COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX LARGE TAXPAYER UNIT, BANGALORE Versus M/s BILL FORGE PVT LTD, BANGALORE [2011 (4) TMI 969 - KARNATAKA HIGH COURT], Strategic Engg. Ltd. Vs CCE, Madurai [2014 (11) TMI 89 - MADRAS HIGH COURT]. The Hon’ble High Court of Karnataka and Madras, in the above decisions have referred to the judgment laid in Ind-Swift Labs case [2011 (2) TMI 6 - Supreme Court]. The Commissioner(Appeals) has observed that the assessee has disclosed the availment of credit in ER-1 return and that the said fact was well within the knowledge of the department and therefore, it cannot be alleged that the respondent/assessees has wilfully suppressed the facts with intent to evade payment of duty. As the assessee/ respondents has reversed the credit prior to utilisation, relying upon the decision in the case of Billforge Ltd and Strategic Engineering Ltd, I find no grounds to interfere with the well reasoned order passed by Commissioner (Appeals) - demand set aside - appeal dismissed - decided against Department.
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