TMI Blog2015 (10) TMI 1235X X X X Extracts X X X X X X X X Extracts X X X X ..... it is so then interest is not payable by the appellant as held by the Hon'ble High Court of Karnataka in the case of Bill Forge Pvt. Ltd. (2011 (4) TMI 969 - KARNATAKA HIGH COURT). Therefore, demand and interest is set aside. The contention of the appellant that they have not paid the amount of 10% of the value of exempted final product and taken Cenvat Credit twice wrongly under bonafide belief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order contesting the demand of interest and imposition of penalty. 2. The facts of the case are that appellant is a manufacturer of dutiable as well as exempted final product and are not maintaining separate account for input / input services which are being used in manufacturing of dutiable as well as exempted final product. During the course of audit it was also revealed that the appellant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appropriated the amount of duty already paid by the appellant and also confirmed the demand of interest for intervening period and impose equivalent amount of penalty. On appeal before the Ld. Commissioner (A) the demand of interest was confirmed, penalty was reduced to 25% of the duty involved. Aggrieved from the said order appellant is before me praying that interest is not payable as per the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set aside. The contention of the appellant that they have not paid the amount of 10% of the value of exempted final product and taken Cenvat Credit twice wrongly under bonafide belief is not acceptable as appellant are manufacturing excisable goods and when they are clearing exempted final product from their factory they are required to pay 10% of the value of the said goods. These provisions are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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