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2017 (9) TMI 1375 - HC - Central ExciseDemand of interest - Rule 14 of the CENVAT Credit Rules, 2004 read along with Section 11AB of the Central Excise Act, 1944 - reversal of CENVAT credit - manufacture of taxable as well as exempted goods - non-maintenance of separate set of books - Rule 6(3)(b) of the Cenvat Credit Rules, 2004 - Held that: - reliance placed in the case of Commissioner of Central Excise, Chennai - 4 vs. Sundaram Fasteners Limited [2014 (2) TMI 551 - MADRAS HIGH COURT], where it was held that Though Rule 14 contemplates that Cenvat Credit taken shall be recovered from the manufacturer along with interest the facts of the present case are slightly different as there was no allegation that there was intention on the part of the assessee to evade payment of duty by wrongly availing the credit - levy of interest is valid. Whether CESTAT, Madras was right in setting aside demand and penalty? - Held that: - as per Section 73 sub-section (2) of the Finance Act, 2010, the assessee has to make an application to the Commissioner of Central Excise along with documentary evidence and a Certificate from the Chartered Accountant or a Cost Accountant, certifying the amount of input credit attributable to the inputs used in or in relation to the manufacture of exempted goods within a period of six months from the date on which the Finance Bill, 2010 received the assent of the President - Considering the fact that assessee had reversed the credit even prior to the amendment and the order of the Tribunal was in fact no different from what is contemplated under the Finance Act, 2010, this court held against the Revenue. There is no manifest error, in the final order of the CESTAT, Madras, in setting aside the demand, and restricting the same only to interest - appeal dismissed - decided against Revenue.
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