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2021 (7) TMI 162 - AT - Central ExciseLevy of penalty u/s 11AC of the Central Excise Act, 1944 read with Rule 15 Cenvat Credit Rules, 2004 - appellant has reversed the credit along with interest immediately on being pointed out by the department - suppression of facts or not - HELD THAT:- The appellant has reversed the credit availed on Works Contract Service and Man-power Supply Service immediately on being pointed out by the department. The credit was reversed in 2014 along with applicable interest. The issue whether the credit is eligible or not is a legal issue. No positive evidence is brought to light that the appellant had any fraudulent intention to avail such credit. Though the department alleges suppression of facts, it has to be stated that the said availment of credit came to light from the accounts maintained by the appellant. The strong inference would be that the appellant reflected the availment of credit in their accounts and the allegation of suppression fails. The penalty under section 11AC cannot sustain - Appeal allowed - decided in favor of appellant.
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