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2018 (7) TMI 1369 - HC - Central ExciseDemand of Interest and penalty - CENVAT Credit reversed with respect to Basic Customs Duty and Cess on Textiles which was not admissible to it - Held that:- The controversy involved in this appeal is squarely covered by the decision of the co-ordinate Bench of this Court in the case of Commissioner of Central Excise & Sales Tax, LTU, Bangalore Vs. Bill Forge Pvt. Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT], where it was held that Once the entry was reversed, it is as if that the Cenvat credit was not available. The imposition of penalty and interest in the present case has been set aside by the learned Tribunal essentially on the ground that soon upon the mistake being pointed out by the Officer of the Department, the Respondent Assessee immediately reversed the Cenvat Credit wrongly availed by it in respect of the Basic Customs Duty (BCD) and Cess on Textiles - there cannot be said to be any mis-statement, fraud or collusion on the part of the Respondent Assessee through which it wanted to evade the Excise Duty in question - the setting aside of the interest and penalty in these circumstances cannot be faulted. Appeal dismissed - decided against Revenue.
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