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2022 (12) TMI 365 - AT - Central ExciseLevy of interest and penalty - Reversal of CENVAT Credit (without utilization) on being pointed out, before issuance of SCN - malafide intent or not - extended period of limitation - HELD THAT:- There is no dispute that the appellant have wrongly availed the cenvat credit and subsequently reversed. The provision for interest is made under Rule 14 of the Cenvat Credit Rules, 2004 - From the plain reading of rule 14 of CCR, it is clear that the interest is chargeable in event of either wrongly availed credit or wrongly utilized. Therefore, even though the credit was not utilized but since the credit was wrongly availed the interest is unavoidably chargeable. Following the Supreme Court judgment in the case of UOI AND ORS. VERSUS IND-SWIFT LABORATORIES LTD. [2011 (2) TMI 6 - SUPREME COURT], the interest is chargeable. Hence, the demand of interest is upheld. Extended period of limitation - Penalty under section 11 AC which is equal to the amount of cenvat credit availed - HELD THAT:- The show cause notice has invoked the extended period, the ingredients for invoking extended period for demand as well as for imposition of penalty under section 11 AC are same. The demand being under extended period the penalty is inevitable, once demand is sustainable for extended period, the penalty under section 11 AC is imposed as mandatory - There is no dispute that the appellant have availed the cenvat credit during January 2005 to march 2007 and it is on pointed out by the department the same was reversed on 20.07.2007. The wrong availment of credit was suppressed from the department as the department was not aware that the credit taken by the appellant was pertaining to their other unit. In this circumstance the extended period was rightly invoked. Therefore, the demand for the extended period as well as equal penalty is sustainable. Appeal is dismissed.
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