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2018 (8) TMI 997 - AT - Central ExciseCENVAT Credit - credit availed on certain Capital goods, which were subsequently found defective - demand alongwith interest and penalty - Held that:- Undisputedly the credit availed by them remained a paper entry and same was not utilized till the date of reversal - Hon’ble Karnataka High Court in the case of Commissioner of Central Excise & Service Tax, LTU, Bangalore vs. Bill Forge Pvt. Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT] has held that in such a scenario, no interest liability would arise against the assessee where the wrongfully taken credit stand reversed without utilization. Penalty - Held that:- There could be a bona fide belief on the part of the assessee not to reverse the credit. Otherwise also the said credit availed by them was not being utilized, thus leading credence to the appellant’s believe that there was no mala fide as they were having sufficient credit balance in their records - penalty set aside. Demand is confirmed but penalty and interest are set aside - appeal allowed in part.
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