2018 (4) TMI 212

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....ociates, For The Appellant Shri Pakshirajan, Asst. Commissioner (Ar), For The Respondent Per: S.S GARG The present appeal is directed against the impugned order dt 23/08/2017 passed by the Commissioner(Appeals) whereby the Commissioner(Appeals) has disallowed and demanded the total credit of Rs. 10,62,843/- along with interest and dropped the demand of   Rs.10,25,665/- but impos....

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.... not fall within the definition of capital goods under the category components, spares and accessories of the specified goods. Therefore show-cause notice was issued proposing to demand duty along with applicable interest and penalty alleging suppression of facts etc. with intent to evade duty to invoke extended period provisions. The original authority confirmed the proposals in the show-cause no....

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....y the audit (i.e. prior to the issuance of the show-cause notice). He further submitted that now the appellants are not contesting the reversal of CENVAT credit of Rs. 20,14,237/- but are contesting the imposition of penalty in the present appeal. He further submitted that the Commissioner(Appeals) has wrongly relied upon the decision in the case of Vandana Global Ltd. vs. CCE, Raipur [2010-TlOL-6....

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....order. 6. After considering the submissions of both sides and perusal of records, I find that though the appellant has a good case on merits but since they have reversed the credit before issuance of show-cause notice and are only contesting the imposition of penalty, I find that the penalty in  this case is not sustainable as the issue relates to interpretation of law and the appellant ha....