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2018 (1) TMI 199 - AT - Central ExciseTime limitation - reversal of irregular availed CENVAT credit - demand of interest and penalty - Held that: - though the services on which credit availed were received by the appellant before 1-3-2006 however credit was taken in the month of March, 2006 when the final product become dutiable. In this regard when the credit was shown availed in the month of March when the product is dutiable no one can assume that credit was taken wrongly. The fact that the credit was pertaining to the period prior to 1-3-2006 was not declared in ER-1 return and was not known to the department therefore even though the availment of Cenvat credit was shown in the ER-1 return for the month of March but in absence of information regarding the receipt of input service prior to 1-3-2006 when product was exempted was not disclosed, therefore there is clear suppression of facts and malafide intention on the part of the appellant - Extended period was rightly invoked, hence demand cannot be made being time barred. Demand of Cenvat credit upheld by the Commissioner(Appeals) is maintained. As regard the penalty, adjudicating authority has not given the option of 25% penalty in the order-in-original as required under the proviso to Section 11AC. Penalty is reduced to 25% under Section 11AC subject to condition that the appellant pay this amount within a period of 30 days from the date of receipt of this order. Appeal allowed in part.
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