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2016 (8) TMI 623 - AT - Central ExcisePeriod of limitation - Whether the show cause notice is barred by limitation or not - show cause notice issued by invoking the extended period of limitation and only defence taken by the appellant that due to inadvertent mistake, they could not reverse the credit of AED - Held that:- the appellant has taken the credit of CVD and AED at the time of procurement of inputs. The appellant is required to reverse the credit of CVD as well as AED at the time of clearance of inputs as such but the appellant has not reversed the credit of AED. No satisfactory explanation has been given by the appellant. Moreover, the appellant admitted their liability that they have availed credit inadvertently and reversed the same only on pointing out by the Audit. If audit could not take place then this inadmissible credit availed by the appellant could not be detected. Therefore, the extended period of limitation is rightly invoked and the amount of AED reversed by the appellant is confirmed and appropriated. Whether the interest is payable by the appellant for intervening period or not - Held that:- as already observed that the appellant has not utilized the credit pertaining to AED during the intervening period, therefore, the appellant is not required to pay interest for the intervening period in view of the decision of Hon'ble Karnataka High Court in the case of Bill Forge Pvt.Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT]. Whether the appellant is required to be penalized or not - Held that:- as the extended period of limitation is invokable, I hold that the penalty is impossible on the appellant. I also find that as the appellant already reversed the credit before issuance of cause notice, in that circumstance, the penalty is reduced to 25% of the inadmissible credit availed by them. Therefore, the penalty is reduced to 25% of the amount of duty involved. - Appeal disposed of
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