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2018 (4) TMI 1495 - AT - Central ExciseRecovery of excess refunds - CENVAT credit - area based exemption - N/N. 56/2002-CE dated 14.11.2002 - revenue was of the view that the appellant should have availed the credit in their books and paid duty by cash only on the excess - Liability of interest - penalty - In view of the non-compliance with the mandatory condition of Notification No. 56/2002-CE, the demand of wrongly availed refund by way of self-credit should be upheld but no interest and penalty be imposed? - difference of opinion - majority order. Held that: - It is seen that though initially the appellant did not follow the stipulated procedure by first entering the credit, utilizing the same and availing self-credit on only excess payment, however, later in order to rectify the said mistake, the said amount which was already availed as self-credit was entered into in the Cenvat credit books. This was utilized for payment of duty on final products. The net result is on this subsequent utilization of credit the payment by cash got reduced resulting in less refund to the appellant - denying and demanding the wrongly availed self-credit on first instance is not sustainable. Admittedly, the appellant followed the correct procedure on the second time though on the first instance they have wrongly taken direct self-credit. Interest and penalty - Held that: - the inadvertent mistake in the first instance was rectified later by following due procedure - interest and penalty also do not sustain. Appeal allowed - the appeal file is returned back to the regular bench for further action.
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