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2018 (11) TMI 1377 - AT - Central ExciseIrregular availment of CENVAT Credit - the said credit was adjusted before issuance of the show cause notice - demand of interest and penalty - Held that:- There is no dispute regarding quantum of the credit availed and subsequently reversed by the assessee. They also paid the interest amounting to ₹ 18,552/- much before issuance of the SCN and the same finds mentioned in the show cause notice and has also been appropriated in the adjudication order. Penalty under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 - Held that:- The CENVAT credit taken by the appellant was reversed much before issuance of the SCN and the same has already been appropriated by the adjudicating authority. Though there is allegation in the show cause notice regarding suppression, but it has not been specifically explained in the show cause notice as well as in the adjudication order as to how the intent to evade payment of the Central Excise duty is established taking into consideration that the appellant is subjected to periodical audit by the department and the documents on the basis of which credit has been taken was available for inspection of the audit - penalty imposed under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 is not attracted. The appeal is allowed.
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