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2018 (2) TMI 525 - AT - Central ExciseCENVAT credit - Rule 16 of CER 2002 - Since, the duty paid products brought back by the appellants were time expired products in terms of Pesticides Rule, 1971 and cannot be put to reprocessing, the credit availed is denied - Held that: - Admittedly, the appellants cannot reprocess the returned goods due to statutory regulations governing pesticides - there can be no allegation of suppression or fraud in availing the credit, on their own returned goods on which they have discharged originally the Central Excise duty. Considering that the full reversal of ineligible credit along with interest has been made by the appellant well before the issue of notice, the case could have been closed without issue of notice. The period of availment of irregular credit being longer than one year by itself will not bar the closure of the proceedings. While upholding the reversal of credit with interest, no further proceedings are required - the penalty imposed on the appellant are set aside - appeal allowed in part.
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