TaxTMI 
TaxTMI 
2016 (8) TMI 623
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.... appeal against the impugned order wherein the demand of interest has been confirmed and penalty equal to reversed credit is also imposed. 2. The facts of the case are that the appellant imported certain inputs and availed credit of CVD as well as AED. The appellant cleared these inputs without utilizing the same in the manufacturing process and reversed the credit pertaining to the CVD but....
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....ly as the regular accountant was on leave and part time accountant was maintaining the records. Due to their inadvertent mistake, the credit of AED was not reversed, therefore, the penalty is not imposable on the appellant. He further submits that as the credit availed of AED was not utilized during the intervening period, therefore, they are not liable to pay interest as per the decision of Hon&#....
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....ble to pay interest also. 5. Heard the parties and considered the submissions. 6. After hearing both sides, following issues emerge: (i) Whether the show cause notice is barred by limitation or not (ii) Whether the interest is payable by the appellant for intervening period or not and (iii) Whether the appellant is required to be penalized or not 6. With regard to the....
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....lant could not be detected. In that circumstance, I hold that the extended period of limitation is rightly invoked. Therefore, the amount of AED reversed by the appellant is confirmed and appropriated. 7. The issue No.(ii), as already observed that the appellant has not utilized the credit pertaining to AED during the intervening period, therefore, the appellant is not required to pay inter....