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2023 (10) TMI 422 - CESTAT HYDERABADReversal of CENVAT Credit - exempted goods are cleared or exported to EOU or to SEZ - seeking reversal alongwith interest - Clearances of exempted goods in DTA, paying 10% amount - penalties In respect of Rs.15,59,640/- - HELD THAT:- The Revenue is admitting that the amount has already been paid but insisting that the interest is required to be paid on this amount. In respect of Rs.29,61,191/- already reversed by the Appellant, Revenue admits that interest of Rs.1,47,209/- has already been paid. The interest amount paid is not being disputed on account of any quantification. In respect of Rs.74,64,464/- - HELD THAT:- The AR’s Office has queried the details from the Jurisdictional Commissioner to get it verified as to whether 10% of the value of the clearance of the exempted goods was being paid by the Appellant, as claimed by them. They have received letter dated 21.06.2013 from the Office of the Commissioner, Visakhapatnam, stating that the Assessee has reversed 10% of the value of clearances. This letter has been annexed with the synopsis submitted by the Revenue. Interest amount - HELD THAT:- In respect of the interest of Rs.29,61,191/-, the same stands paid by the Appellant. Since the Appellant has not brought in any evidence to the effect that they were carrying sufficient balance, we reject their submission that interest is not required to be paid. The interest of Rs.1,47,209/- paid by them meets the requirement of interest as demanded in the OIO - Similarly, in respect of Rs.15,59,640/-, since the AR’s Office has received confirmation about payment of the same and the Appellant is not contesting the same, no Appeal lies from the Appellant’s side on this count. However, they are required to pay the interest on this amount. Clearances of exempted goods in DTA, they have paid 10% amount - HELD THAT:- This fact has been verified by the Revenue and the Jurisdictional Authorities have confirmed that this is correct. Therefore, once the Appellant pays the 10% amount on the clearance of exempted goods, the demand of Rs.74,64,464/- would amount to once again demanding reversal of the Cenvat credit which is legally not permissible. Therefore, Appeal allowed to the extent that the confirmed demand of Rs.74,64,464/- is set aside. Penalties - HELD THAT:- Since the issues involved are that of interpretation and almost the entire duty demands have been dropped at the first stage itself and even the balance confirmed demand is being set aside now, the penalties are set aside. Appeal disposed off.
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