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2021 (5) TMI 852 - AT - Central ExciseLevy of Interest - carry forward of excess credit - penalty - the amount was reversed on being pointed out - time limitation of paying interest - HELD THAT:- Admittedly there was mistake on the part of the Appellant in carrying forward in their Books of Accounts the closing balance of CENVAT credit for the month of August 2008, while switching from ERP to SAP system w.e.f 01/09/2008, in the opening balance for the month of Sep. 2008. When such mistake was pointed out by the audit team while scrutiny of their records in Sep. 2009, the Appellant immediately reversed the entire credit on 10/09/2009 accepting the lapse on their part but failed to pay applicable interest on the excess credit availed - In the present case, the Appellant reversed the credit in September 2009 but since failed to discharge the interest of the same, consequently, within a period of one year, the interest was demanded from the Appellant by issuing a notice to the Appellant. Hence, the demand for interest is not barred by limitation. Levy of penalty equivalent to the amount of Cenvat Credit reversed - HELD THAT:- It is not warranted in the facts of the circumstances of the present case as it was a bona fide mistake of carrying forward excess credit as on 01/09/2008 on account of switching over from ERP to SAP system. There is no other allegation or evidence brought on record by the revenue that intentionally and purposefully the Appellant had shown wrong opening balance thereby continued to enjoy excess credit for a period of time till it is pointed out by the audit. Therefore, imposition of penalty equal to the amount of credit availed cannot be sustained. Appeal allowed in part.
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