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2017 (11) TMI 4 - CESTAT BANGALORECENVAT credit - inputs used for manufacture of exempt as well as taxable goods - non-maintenance of separate set of books - Rule 6(3A)(b) of the Cenvat Credit Rules - whether the appellant has correctly reversed the cenvat credit attributable to the common inputs and input services consumed for exempted goods cleared, for the period 01.04.2008 to 28.02.2009 along with interest or otherwise? - Held that: - It is undisputed that on being pointed out by the audit party, the error in their availment of cenvat credit, appellant reversed the proportionate cenvat credit attributable to the inputs and input services consumed in the manufacturing and clearance of the exempted final products along with interest at the rate of 13% - In the case in hand the appellant has already discharged the interest at the rate of 13% on the common inputs and input services attributable to the exempted goods. In view of this, the impugned order of the adjudicating authority seeking interest at the rate of 24% is unsustainable and liable to be set aside. Penalty - Held that: - there is no reason to visit the appellant with such a penalty under Rule 15(2) of the Cenvat Credit Rules 2004 inasmuch as, it is on record that the appellant has reversed the entire amount of service tax liability with interest prior to the date on which he is supposed to do so i.e. 30th June 2009 - penalties set aside. Appeal allowed - decided in favor of appellant.
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