TMI Blog2011 (8) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant. In this appeal, the following question of law is raised:- "Whether the penalty can be waived off under Rules 15 of the Cenvat Credit Rules, 2004 when credit has been taken and availed in contravention of Rule 11 (2) of the Cenvat Credit Rules, 2004?." The Joint Commissioner (Adjudication), Central Excise, Headquarters, Allahabad, confirmed Cenvat Credit/duty, amounting to Rs.6,97,510/-for recovery, as demanded by the show cause notice under Section 11-A of the Central Excise Act 1944 read with Rule 14 of the Cenvat Credit Rules 2004. He also confirmed the additional Cenvat Credit/duty, amounting to Rs.3,140/- on the miscalculation by respondent Company, as a differential amount, and recovery of interest and impose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Excise Act provides for penalty, equal to the duty so determined, for short-levy or non levy of duty in certain cases. Rule 15 (1) of Cenvat Credit Rules 2004, provides for penalty, not exceeding the duty on the excisable goods in case a person takes CENVAT credit in respect of input or capital goods, wrongly or in contravention of any of the provisions of the rules. Sub rule (2) provides for levy of penalties under Section 11 AC of the Excise Act, in case of fraud, wilful mis-statement, collusion or suppression of facts or contravention of any of the provisions of the Excise Act, or the rules made thereunder with intention to evade payment of duty. The penalty under sub-rule (2) is in addition to penalty under sub ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice, then, such person, shall be liable to a penalty which may extend to an amount not exceeding two thousand rupees. (4) In a case, where the CENVAT credit in respect of input services has been taken or utilized wrongly by reason of fraud, collusion, willful mis-statement, suppression of facts, or contravention of any of the provisions of the Finance Act or of the rules made thereunder with intention to evade payment of service tax, then, the provider of output service shall also be liable to pay penalty in terms of the provisions of section 78 of the Finance Act. (5) Any order under sub-rule (1), sub-rule (2), sub-rule (3) or sub-rule (4) shall be issued by the Central Excise Officer following the principles of natural justice. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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