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2019 (7) TMI 902 - AT - Central ExciseIrregular reversal of CENVAT Credit - the bone of contention between the appellant and the Department is the quantum of the amount to be reversed under Rule 6(3A) of CENVAT Credit Rules - reversal as per formula as specified in Clause (c) of sub rule (3A) of Rule 6 of Cenvat Credit Rules, 2004 or not - HELD THAT:- The Commissioner (Appeals) has observed that the appellants have not produced sufficient document to verify the reversal but the appellant has given full details of reversal in the appeal memorandum with detailed worksheets but the same was not allegedly produced before the Commissioner (Appeals). As per the Department the appellant has less reversed ₹ 1,77,784/- and the appellant in order to settle the issue has agreed to reverse the ineligible cenvat credit aggregating ₹ 1,77,785/- which mainly arose due to difference in computation as per the Central Excise Department and as per the certificate issued by the Chartered Accountant. Further the appellant has also agreed to make payment of the interest aggregating ₹ 2,25,962/- due to delay in reversal of cenvat credit as per the computation given at the time of argument. Since as per the details given by the appellant, he has reversed specific amount for the disputed period except ₹ 1,77,784/- which is liable to be reversed along with interest of ₹ 2,25,962/-. Penalty - HELD THAT:- The Department has not brought any material on record to show that the appellant has suppressed the material fact with intent to evade the payment of duty. All the details were given in the books of accounts and also in ER-1 return from time to time which was audited by the Department - the substantial amount of cenvat credit was reversed before the issuance of show-cause notice, therefore the appellant is not liable to pay penalty - the appellants are not liable to pay the penalty under Rule 15(2) of Cenvat Credit Rules read with Section 11AC of the Central Excise Act. The appeal of the appellant is allowed subject to the verification of the reversal of ineligible credit made by the appellant as per the formula specified in clause (c) of sub-rule (3A) of Rule 6 of Cenvat Credit Rules 2004. Appeal allowed by way of remand.
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