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2017 (1) TMI 153 - AT - Central ExciseImposition of penalty - irregular credit on the capital goods - credit reversed prior to issue of SCN - Held that: - The appellants have reversed the irregularly availed credit prior to utilization and even prior to issue of SCN. The question whether the appellants are liable to pay penalty when the credit which was irregularly availed was reversed before utilization has been decided in favor of the assessee in the case of CCE & ST, LTU, Bangalore Vs M/s Bill Forge Pvt Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT], where it was held that once the entry was reversed, it is as if that the Cenvat credit was not available - further reliance also placed in the case of M/s Hemarus Industries Ltd., Vs CCE, Kolhapur [2016 (11) TMI 54, CESTAT, Mumbai], where it was held that mere taken of CENVAT credit facilities is not at all sufficient for claiming of interest as well as penalty - penalty not imposable - appeal allowed - decided in favor of assessee.
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