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2019 (5) TMI 1402 - AT - Central ExciseCENVAT Credit - common input services which is used for both dutiable and exempted final products - reversal of proportionate credit attributed to exempted products - demand on interest and penalty - HELD THAT:- There is no contest of demand of Cenvat credit, hence the same is upheld. Penalty - HELD THAT:- The demand was raised for the extended period as there is suppression of facts on the part of the appellant therefore, in terms of decision of the Hon'ble Apex Court in the case of UOI vs. Dharamendra Textile Processors [2008 (9) TMI 52 - SUPREME COURT], even though the amount is paid before issuance of show cause notice as per the proviso to Section 11A invoked, penalty cannot be reduced nor waived. Demand of Interest - HELD THAT:- The interest can be charged in case where Cenvat credit is taken wrongly and also utilized. Only for availment of Cenvat credit without utilization thereof, interest cannot be demanded - In the present case, the appellant though availed Cenvat credit but have not utilized till the date of reversal, therefore, interest is not chargeable. Hence demand of interest is set-aside. Appeal allowed in part.
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