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2014 (4) TMI 504 - HC - Central ExciseIntention to evade duty - CENVAT Credit - assessee was not aware of the same, therefore, reversed the credit on the basis of the transaction value of the inputs, paid the differential amount in October 2003 - Equivalent penalty u/s 11AC - Suppression of facts - whether equal penalty is leviable on the ground that although the amendment to Rule 3(4) of the Cenvat Credit Rules, 2002 was introduced on 01.03.2003 - Held that:- The Tribunal, after examining the facts pointed out that Rule 3(4) of the Cenvat Credit Rules, 2002 came into effect on 01.03.2003 and the assessee's plea that they were ignorant about such an amendment for some period of time was found to be acceptable. Furthermore, the Tribunal noticed that though the amendment came into effect from 01.03.2003 and the Department did not act immediately by issuing a show cause notice within the period of limitation prescribed under the Act. Further on perusal of the allegations made in the show cause notice, it is evidently clear that there is no material placed by the Department to establish that the conduct of the assessee in reversing the credit on the basis of the transaction value of the inputs, though the amendment came into effect from 01.03.2003 was with an intention to evade payment of duty. Thus in the absence of such a finding that there was intention to evade payment of duty, the Tribunal rightly deleted the penalty under Section 11AC of the Act - Decided against Revenue.
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