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2018 (7) TMI 7 - AT - Central ExciseCENVAT Credit on duty paid by appellant - advance license scheme - Revenue being of the view that inasmuch as the deposits were made in terms of order of Settlement Commission, which were final order not appealable before any higher Appellate Forum, and was based on the appellants prayer for settling the dispute, the appellant was not entitled to the credit of the duty was paid - Demand of Interest - Held that:- Appellant availed the credit of the duty deposited in terms of order of the Settlement Commission but subsequently reversed the same, when proceedings were initiated against them for recovery. The fact of availment of credit was duly reflected by them in their accounts as also in the ER-1 returns thus indicating absence of any mala fide on their part - by appreciating the fact that the issue involved is on bona fide issue of legal interpretation, there is no justification for imposition of penalty upon the appellant. Demand of Interest - Held that:- The credit availed by the assessee remained as a paper entry only and the same was never utilized by them - Hon’ble Karnataka High Court decision in the case of Commissioner of Central Excise vs. Bill Forge Pvt. Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT] has held that in case the credit availed is reversed before utilization, no interest liability would arise - interest set aside. Appeal allowed in part.
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