2016 (7) TMI 349

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.... is engaged in the manufacture of Poly Styrene Products falling under heading 3923 1093 and 3921 1090 of Central Excise Tariff and they have availed benefit of cenvat credit of duty paid on inputs and capital goods. During the course of verification of records by the Department for the period October 2005 to February 2007 it was pointed out by the Department that the appellant has availed irregular cenvat credit of Rs. 27,673/- (Rupees Twenty Seven Thousand Six Hundred and Seventy Three only) wrongly (availed during the period from November 2005 to October 2006) and cenvat credit to the extent of Rs. 61,114/- (Rupees Sixty One Thousand One Hundred and Fourteen only) (availed during October 2006 to June 2007). On being pointed out by the dep....

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....mitted that vide order dated 28.12.2010, the learned Commissioner (Appeals) has observed that the appellant has filed the appeals only against demand of interest and imposition of penalty whereas appellant has filed the appeal before the Commissioner against some of the demands also. He further submitted that out of the total amount of duty confirmed in Appeal E/2091/2011 amounting to Rs. 27,673/- (Rupees Twenty Seven Thousand Six Hundred and Seventy Three only), out of this demand a credit of Rs. 1,572/- (Rupees One Thousand Five Hundred and Seventy Two only) was availed based on the copy of invoice duly certified by the Superintendent of Central Excise having jurisdiction. Similarly an amount of Rs. 21,423/- (Rupees Twenty One Thousand Fo....

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.... not liable to pay interest because he has availed the credit but reversed the same being pointed out by the Department and has not utilized the same. Besides this in my opinion the show-cause notice itself was time-barred since the fact of irregular availment of cenvat credit was observed by the audit in November 2007 whereas the show-cause notice was issued only on 25.03.2009 based on the same audit objection which is beyond limitation. Further with regard to imposition of penalty under Section 11AC is concerned, the learned Commissioner herself has admitted that by clerical error they have availed irregular credit over a period of time and on being pointed out by the Department, the appellant reversed the credit so availed and there is n....