Facts 

• The appellant, M/s Indian Food Tech Limited, is a manufacturer of ready to  cook foods, sauces, culinary paste,etc., which are dutiable under Chapter 20 and 21. The appellant cleared their good under Notification No.1/2011-CE and under Notification No.2/2011-CE. 
• Revenue issued a letter to the appellant that the appellant have discharged Central Excise duty from cenvat credit account, on clearance of excisable goods availing benefit of Notification No. 1/2011-CE, and the same debars the appellant from discharging the duty by utilising cenvat credit under Rule 3(4) of CCR. 
• The appellant inter alia stated that apart from Domestic clearance they also export products resulting in accumulation of cenvat credit. On being pointed out by the Department they have started discharging duty through cash for clearances and further paid the duty. The appellant also maintaining separate account with respect to clearances under Notification No.1/2011 and have not availed credit on inputs. 
• Being not satisfied with the stand of the appellant show cause notice was again issued . Also penalty Under Section 11 AC was proposed. 

Issue 

• Whether impugned order demanding duty along with interest and penalty is justified ?

Order 

• The Tribunal observed that the appellant have filed their returns (form ER-1) from time to time and have made proper disclosure of their clearances and mode of payment of duty. 
• As the GST regime have been implemented, the appellant can transfer cenvat credit to GST regime as on 30.06.2017. The duty was demanded after implementation of GST regime. Thus there is only a venial breach of law by utilisation of cenvat credit for payment of duty for goods cleared under concessional rate during the period under dispute. 
• The Tribunal also find that the situation is Revenue neutral as on payment of duty again in cash as demanded by the impugned order, the appellant shall be entitled to refund of equal amount being the duty discharged earlier through cenvat credit. 
• Hence, the impugned order is set aside and appeal is allowed.