2016 (11) TMI 921

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....During audit in 2009 it was detected that the appellant had taken credit of the entire quantity while a part of the quantity was transferred to their Baddi unit. On pointing out, the appellant reversed the credit after about a year and a half. They have also paid interest thereon. A show-cause notice was issued in October 2010 seeking to confirm the reversal already made and the interest already paid by them. The notice also sought to impose penalty under Rule 15 (2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. The original adjudicating authority as well as the first appellate authority confirmed the reversal and also the payment of interest. They also confirmed the imposition of penalty. Aggrieve....

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....under with intent to evade payment of duty. Explanation 2. -For the removal of doubts, it is hereby declared that the interest under section 11AB shall be payable on the amount paid by the person under this sub-section and also on the amount of short-payment of duty, if any, as may be determined by the Central Excise Officer, but for this sub-section.] 72 [ Explanation 3 .-For the removal of doubts, it is hereby declared that no penalty under any of the provisions of this Act or the rules made thereunder shall be imposed in respect of payment of duty under this sub-section and interest thereon." 3. According to learned Counsel for the appellant, since they had reversed the credit and also paid the interest when the same was pointed out b....