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2018 (5) TMI 1298 - AT - Central ExciseLiability of Interest u/s 11AB of the Central Excise Act, 1944 - Penalty u/r 15(3) of CCR 2004 read with Rule 25 of CER 2002 - appellant have wrongly availed cenvat credit twice on the same invoice in the month of April 2007 - Held that: - as per Rule 14, the wordings are if the credit has wrongly been taken or utilize the interest is chargeable therefore even though the credit was not utilized only on cenvat taken, the interest is chargeable - Hon’ble Supreme Court in the case of Ind-Swift Laboratories Ltd. [2011 (2) TMI 6 - SUPREME COURT] interpreting Rule 14 held that interest is chargeable from the date of taking credit - the appellant is liable to pay the interest on wrongly availed credit from the date of taking credit till the reversal thereof. Penalty - Held that: - the appellant has no malafide intention. The wrong credit availment twice on the same invoice is due to inadvertence. This cannot be taken as intention to evade duty - More over the appellant is a Public Sector Undertaking and paying the huge revenue therefore it cannot be expected from the appellant that they had any malafide intention to avail wrong credit - penalty not warranted. Appeal allowed in part.
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