Tribunal rules in favor of appellant, sets aside interest and penalties.

The Tribunal confirmed the Cenvat Credit reversal but set aside the demand for interest and penalties, ruling in favor of the appellant. The appeals were disposed of accordingly.

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Issues:
- Demand of interest and penalty for wrong availment of Cenvat Credit twice on same invoices.

Analysis:

Issue 1: Demand of Interest and Penalty
The appellant appealed against orders demanding interest and penalty due to wrongly availing Cenvat Credit twice on the same invoices. The appellant reversed the excess credit upon audit discovery, leading to show cause notices being issued invoking the extended period of limitation. The Revenue argued mala-fide intention due to undetected credit availing, citing the decision in Union of India Vs. Ind-Swift Laboratories Ltd. The appellant contended that immediate reversal upon audit discovery, with sufficient credit balance, negates mala-fide intention, referencing the case of Vodafone Mobile Services Limited Vs. Commissioner Service Tax, Pune. Additionally, the appellant argued that demand of interest by invoking extended period lacked merit, citing the case of CCE Vs. VAE VKN Industries Pvt. Ltd. The Tribunal found no mala-fide intention due to sufficient credit balance, aligning with previous rulings. Regarding interest demand, the Tribunal held that as show cause notices were issued under extended limitation without evidence of mala-fide intention, they were time-barred.

Outcome:
The Tribunal confirmed the Cenvat Credit reversal but set aside the demand for interest and penalties, ruling in favor of the appellant. The appeals were disposed of accordingly.

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