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2014 (10) TMI 758 - HC - Central ExciseDenial of CENVAT Credit - assessee availed the credit of CVD as paid as per the direction of settlement commission - levy of penalty would on the Managing Director and the Authorized Signatory - Held that:- Settlement Commission in its order has given a categorical finding that as the consequence of their order, the assessees are entitled to a certificate of payment of Counter Veiling duty from the Jurisdictional Commissioner or the DRI who are duty bound to issue such certificate. Consequently, the certificates issued by the DRI in consequence of the order of the Settlement Commission is perfectly legal. Further, Rule 57E is not applicable. We find that the Counter Veiling duty was paid by the assessee in August, 2002 and the certificate was issued on 6th August, 2002 by the DRI. The Cenvat Credit Rules, 2002 came into existence with effect from 1st March, 2002 and, consequently, the Cenvat Credit Rules became applicable. We are of the opinion that Rule 57E of the Central Excise Rules, 1944 is not applicable in the instant case. With regard to imposition of penalty for contravening the provision of Rule 57E(3), (4) and (5) of the Central Excise Rules, 1944 and Rule 7(1)(b) of the Cenvat Credit Rules, 2002, the Settlement Commission granted full immunity to the assessee for levy of penalty or fine under the Act in respect of matters covered in the dispute. - contravention done the Ex-Managing Director and the Authorised Signatory was one of the dispute which was settled by the Settlement Commission and, consequently, it was no longer open to the department to issue a show cause notice for levying such penalty - Decided against Revenue.
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