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2019 (2) TMI 751 - AT - Central ExciseDemand of Interest - time limitation - reversal of irregularly availed CENVAT Credit in respect of Capital Goods - Held that:- It has been held by the Hon’ble Apex Court in the case of TVS Whirlpool Ltd [1999 (10) TMI 701 - SUPREME COURT OF INDIA] that the demand of interest has to be made within the normal period of limitation or 5 years as the case may be, as is applicable to the demand of duty itself - In this case, there is no allegation or evidence that there was any fraud, collusion, wilful misstatement or suppression of facts with an intention to evade payment of interest on the CENVAT credit. Therefore, the demand of interest should have been made within one year and this has not been done within this time limit - no demand can be made for the interest being time barred. Penalty u/r 15(1) of CENVAT Credit Rules, 2004 - Held that:- To attract penalty under Rule 15(1) of CENVAT Credit Rules, 2004, the person should have taken or utilized CENVAT Credit wrongly or in contravention of the provisions of the Rule - In this case, prima facie there is no evidence of taking credit wrongly by the appellant. It is different matter that the appellant has not disputed and has reversed the credit and is also not contesting reversal of CENVAT credit done by them voluntarily - this is not a case fit for imposition of penalty under Rule 15(1) of CENVAT Credit Rules, 2004. The impugned order is modified to the extent that the interest of the period beyond one year from the show cause notice is set aside and the demand of interest within one year is confirmed and the penalty under Rule 15(1) is set aside - appeal allowed in part.
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