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2017 (5) TMI 550 - AT - Central ExciseInterest - penalty - cenvat credit - receipt of invoice without receipt of goods - reversal of credit on being pointed - Held that: - duty has been paid by the appellants within 09 days of the availing the Cenvat Credit and same is within the same month. In that circumstances, demand of interest is not sustainable - As duty already being paid and there is no demand of interest therefore, as per the provision of Section 11 AC of the Act, penalty on the main party is required to be imposed to the tune of 25% of the duty involved. Penalty is reduced to the 25% of the duty. With regard to the penalty on the Director, the Director was having full knowledge of the availment of the Cenvat Credit by the company therefore, the Director is also liable to penalized u/r 26 of the CER, 2002. However, penalty imposable on the Director is highly excessive and the Commissioner (A) reduced the penalty of ₹ 25000/-. Appeal allowed - decided partly in favor of appellant.
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