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2015 (6) TMI 470

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..... not been levied or paid or has been short levied or short paid, the person chargeable with the duty, may pay the amount of duty on the basis of his own ascertainment of such duty or on the basis of duty ascertained by a Central Excise officer before service of notice on him under sub-Section (1) in respect of the duty so paid and inform the Central Excise officer of such payment in writing, who on receipt of such intimation shall not serve any notice under Section 11A(1) in respect of the amounts so paid. In the present case, it is found that the appellant had paid the duty alongwith interest as per the amount ascertained by CERA audit and requested to drop the show cause notice. - penalty imposed under Section 11AC is set-aside - Decided i .....

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..... the Commissioner (Appeals) modified the adjudication order to the extent, granting benefit to pay penalty of reduced amount under Section 11AC of the Act. The assessee filed this appeal against the demand of cenvat credit alongwith interest and penalty. Revenue filed appeal against reduction of penalty. 3. Learned Advocate on behalf of the appellant submits that the demand of cenvat credit on both issues the show cause notices are not sustainable, in view of the following decisions of the Tribunal:- (a) Steel Authority of India Limited vs. CCE, Raipur 2013 (287) ELT 321 (Tri. Del.) : it has been held by the Tribunal that no time limit is prescribed for taking credit under Rule 4(1) of the Cenvat Credit Rules, 2004. (b) Collector o .....

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..... ir letter dated 10.7.2008 had submitted that the amount of CENVAT credit which was wrongly availed for ₹ 12,21,418/- has been paid by them vide PLA E.No. 25 dated. 02.03.2005 and an interest of ₹ 2,78,336/- has also been debited in PLA vide E.No. 02 dated 30.11.2006 and requested for personal hearing in the matter. Further, vide letter dated 02.12.2008 the assessee had submitted that during CERA audit they had only original Excise invoice copy; that duplicate copy was not traceable; hence audit objection raised; that they debited ₹ 12,21,418/- vide PLA E.No.25 dated 02.03.2005; a letter confirming debit of ₹ 10,21,418/- was intimated to Range Superintendent on 02.03.2005 and an interest of ₹ 2,78,336/- has also .....

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..... nable to accept such a findings of the lower authorities. There were various case laws on this issue as cited by the learned Advocate and the bonafide of the appellant can not be doubted. In any event, the appellant voluntarily reversed the credit alongwith interest and therefore, they have rightly contended that the show cause notice should be dropped. The submission of the learned Advocate that they have contested demand of duty, contrary to the stand taken before the adjudicating authority as stated hereinabove. 8. In view of the above discussion, I modify the impugned order to the extent the penalty imposed under Section 11AC is set-aside. Appeal filed by the assessee is allowed in above terms. Appeal filed by the Revenue is rejected .....

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