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2023 (7) TMI 1173 - CESTAT CHENNAILevy of penalty u/r 15 (2) of CCR 2004 - passing on incorrect cenvat credit without applying the formula as set out in Rule 3 (7) (a) of Cenvat Credit Rules, 2004 with respect to clearances made from 100% EOU - deliberate non-mentioning that the goods originated from 100% EOU and as thus passed on excess duty to the buyers - HELD THAT:- It can be seen that the provision u/r 15 (2) of CCR, speaks about wrongful availment and utilization of cenvat credit. The appellant being a dealer has not availed or utilized the credit. Further it is also stated that the manufacturer shall be liable to pay penalty. This means that the manufacturer or the service provider who avails the credit wrongly or utilizes the credit wrongly is held liable to pay penalty for such wrongful act. There is no allegation in the SCN that the appellant availed credit or utilized the same. In such circumstances, the penalty imposed cannot sustain. The impugned order is set aside. Appeal allowed.
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