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2017 (5) TMI 746 - AT - Central ExciseInterest - penalty - reversal of CENVAT credit availed on the inputs which were cleared as such to sister concern - Revenue authorities during the period were of the view that central excise duty needs to be discharged after arriving at the assessable value as per Section 4 of the Central Excise Act on the inputs, considering them as if manufactured by the appellant - Held that: - the law of the land is, an appellant when he removes the inputs on which cenvat credit availed, he has to only discharge the amount of duty which is availed as cenvat credit on the said quantity of the inputs. This position cannot be called in for any deliberations. Since during the relevant time the appellant had paid differential duty on being convinced by the Revenue, he definitely can take a plea for non-discharge of interest and non-imposition of penalty before the judicial forum. It is the settled law that in the first place if the duty liability does not arise, the question of payment of interest and imposition of penalty will not arise. Appeal allowed - decided in favor of appellant.
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