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2018 (11) TMI 1372 - AT - Central ExciseIrregular availment of CENVAT Credit - 100% CENVAT credit on capital goods availed in the first year instead of 50% - credit was not utilized and was reversed - demand of interest and penalty - Held that:- On account of bona fide mistake, the appellants have taken 100% CENVAT credit in the first year whereas they were entitled to take CENVAT credit up to 50% but as soon as they realized their mistake, they reversed the 50% before the issuance of SCN - also, they had sufficient balance in their CENVAT credit account and therefore, they have not utilized the said CENVAT credit and it was merely a book entry. In the case of CCE vs. Bill Forge [2011 (4) TMI 969 - KARNATAKA HIGH COURT], the Hon'ble Karnataka High Court has held that if the credit was wrongly taken and not utilized and immediately reversed before the issuance of SCN, then the appellants are not required to pay interest and penalty. Demand of Interest and penalty not sustainable - appeal allowed - decided in favor of appellant.
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