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2018 (8) TMI 478 - AT - Central ExciseLiability of Interest and Penalty - reversal of wrongly availed CENVAT Credit before issuance of SCN - whether the appellants are liable to pay interest and penalty on the wrongly availed Cenvat Credit amounting to ₹ 94,208/- despite the fact that much before the issuance of show cause notice they have reversed the same? Held that:- The appellants immediately reversed the Cenvat Credit wrongly availed by them on pointing out by the Department. This itself shows that there is no intention on the part of the appellants to evade payment of tax rather they were having sufficient balance in their Cenvat Credit account - To attract levy of penalty as per the provisions of Section 11AC of the Central Excise Act 1944 the Revenue has to prove that the appellant has availed the Cenvat Credit wrongly by reason of fraud or collusion or any willful misstatement or suppression of facts, which the Department has failed to establish in the present case. Since the appellants did not utilized the cenvat credit wrongly taken and reversed it before utilization, therefore, it amounts to non-taking of credit. Hon’ble High Court of Karnataka at Bangalore in the matter of CCE & ST, Bangalore V/s Bill Forge Pvt. Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT] has held that since the appellants therein was having sufficient balance in their Cenvat Credit account, therefore, the appellant is not liable to pay the interest. Appeal allowed - decided in favor of appellant.
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