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2018 (6) TMI 1482 - AT - Central ExciseDemand of Interest and penalty - confirmation of recovery of CENVAT Credit - Invocation of Rule 14 of CENVAT Credit Rules, 2004 which requires that CENVAT credit should have been taken and utilised for invoking the liability provisions under section 11AB of the Central Excise Act, 1944 - Held that:- Reference to section 11A is limited to the extent that CENVAT credit was recoverable whereas in the present instance CENVAT credit has been reversed and the interest liability would arise only on invoking section 11AA. Considering the legal position, interest liability does not arise. Imposition of penalty - Held that:- Imposition of penalty is independent to rule 14 of CENVAT Credit Rules, 2004 and rule 15 for invoking the liability to penalty under section 11AC of Central Excise Act, 1944, the ingredients specifically mentioned therein must exist - From a perusal of the show cause notice, it is seen that there is no allegation to that effect - penalty not sustainable. Appeal allowed - decided in favor of appellant.
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