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2022 (12) TMI 349 - AT - Central ExciseLevy of equal amount of penalty under Rule 15(2) of Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act - appellant have not utilised the amount of credit as is evident from their cenvat record and is reversed - HELD THAT:- The appellant did not contest the amount of Rs.2,07,598/- from the very beginning and have reversed the same and also deposited 15% penalty as early on 07.04.2016, which is almost one year prior to issuance of show cause notice. Further, it is evident that the said amount remained unutilised till the date of reversal. It has also been held by the Hon’ble Supreme Court in the case of CHANDRAPUR MAGNET WIRES (P) LTD. VERSUS COLLECTOR OF C. EXCISE, NAGPUR [1995 (12) TMI 72 - SUPREME COURT], that where any cenvat credit has been reversed without utilisation of the same, amounts to credit having not been taken at all. Accordingly, appellant is not liable for interest & penalty for this amount. The disputed amount of Rs. 2,07,598/- stood concluded in terms of Section 11AC(1)(d) of the Central Excise Act. Accordingly, no show cause notice should have been issued to this amount. Therefore, the penalty imposed under Section 11AC is set aside alongwith demand of interest. Appeal allowed.
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