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2017 (1) TMI 289 - AT - Central ExciseReversal of CENVAT credit - simultaneous availment of CENVAT credit as well as benefit of exemption N/N. 30/2004-CE dt. 9.7.2004 - demand of interest with imposition of penalty - extended period of limitation - Held that: - the appellant has suppressed the fact regarding availment of credit despite they were claiming exemption under N/N. 30/2004-CE. The appellant was duty bound to reverse the credit on the clearance of the goods under said exemption which they failed to do so. The entire case was unearthed only after the visit of the factory by the officer. Therefore, it is established that there is a suppression of fact on the part of the appellant. In such case the demand was correctly confirmed under the proviso to Section 11A of the Act. Consequently, the equal amount of penalty under Section 11AC is also correct. As regards interest, since the appellant has failed to reverse the credit at the time of clearance of goods under exemption but the same was reversed belatedly after almost 3-4 years, interest is inevitably chargeable under Section 11AB of the Act, from the date of availment of credit till the date of reversal. Demand upheld - appeal dismissed - decided against assessee.
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