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2020 (2) TMI 606 - AT - Central ExciseProportionate reversal of CENVAT Credit - dispute relates to availment of Cenvat Credit on same set of invoices twice and availment of input credit of duty more than the duty amount shown in the relevant invoices for the period 2014-15 - HELD THAT:- The Appellant has also produced a Chartered Accountant’s certificate showing the reversals made for the FY 2014-15 on account of following the procedure as per Rule 6(3) of the CCR, 2004. Also a verification report as submitted by the Range office of the Appellant is placed on record which shows that the Appellant has actually reversed Cenvat credit following the said process for FY 2014-15. From the above noted facts, I find that the Appellant cannot be asked to pay more than what it has actually availed. The Appellant cannot be asked to reverse more than the actual Cenvat credit availed by the Appellant and based on the Chartered Accountant’s certificate and Range Officer’s report, there is no doubt as to the fact that the Appellant has actually followed the process of proportionate reversal under Rule 6(3) of the CCR, 2004. Thus, the demand is set aside on the above ground. Imposition of penalty - HELD THAT:- The disputed amount had been paid before the issuance of the show cause notice, and the entire amount was paid along with interest. Therefore, the payment of duty in the instant case should have been treated as payment of central excise duty under Section 11A(2B) of the Act and the show cause notice should not have been issued. Additionally, the Revenue has not been able to prove beyond reasonable doubt the presence of fraud, collusion, willful misstatement or suppression of facts on the part of the appellant. Therefore, imposition of penalty under section 11AC of the Act is unwarranted. Appeal allowed - decided in favor of appellant.
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