TMI Blog2018 (8) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... ing down that credit can be taken as and when capital goods are received in the factory but not yet installed. Penalty - Sub-Rule (1) of Rule 15 of the Cenvat Credit Rules - Held that:- The sub-rule of Rule 15 has not been indicated in the Show Cause Notice. From the four Sub-Rule in Rule 15 of the Cenvat Credit Rules, no Sub-Rule have been specifically mentioned in the Show Cause Notice - the demand of penalty is not maintainable under provisions of Rule 15 which is a general Rule. Appeal dismissed - decided against Revenue. - Appeal Nos. E/642/2009 & E/712/2009 CO-20/2010 - FO/76389-76390/2018 - Dated:- 17-5-2018 - SHRI P.K. CHOUDHARY, MEMBER (JUDICIAL) And SHRI BIJAY KUMAR, MEMBER (TECHNICAL) Shri Arvind Baheti, CA for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue is in appeal for non-imposition of penalty under Rule 15 (1) of Cenvat Credit Rules, 2004 vide Appeal No.E/712/2009. Assessee has filed a cross objection against this appeal. Revenue in their grounds of appeal have mentioned that the respondent assessee being a manufacturer, is liable to both the penalties as prescribed in Rule 15(1) and 15(2) of the Cenvat Credit Rules, 2004. The show cause notice proposed imposition of penalty under Rule 15 of Cenvat Credit Rules, 2004, but the Adjudicating Authority has imposed penalty under Rule 15(2) only, but did not impose any penalty under Rule 15(1) of the Cenvat Credit Rules, 2004. 2. Ld. Consultant appearing on behalf of the assessee argued the matter at length and submitted brief notes and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstallation of capital goods as a pre-requisite for taking Cenvat credit. The credit can be taken as and when the capital goods are received in the factory. For such capital goods which were received prior to 01.04.2000 but not installed up to 01.04.2000 also, the CENVAT credit would also be admissible. It may, however, be noted that in respect of all capital goods whether received on or after 01.04.2000 or those that were received prior to 01.04.2000 but not yet installed, the condition that CENVAT credit only up to 50% of the total admissible amount would be available in the financial year 2000-2001 would apply. The balance of the CENVAT credit in respect of such capital goods can be taken in a financial year subsequent to 2000-2001. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Respondent was asked to show cause as to why penalty should not be imposed on them in terms of Rule 15 of the Cenvat Credit Rules, 2004 for willful contravention of the provisions of the said Cenvat Credit Rules, 2004 read with Central Excise Rules, 2002. The provisions of Rule 15 have been mentioned. The sub-rule of Rule 15 has not been indicated in the Show Cause Notice. From the four Sub-Rule in Rule 15 of the Cenvat Credit Rules, no Sub-Rule have been specifically mentioned in the Show Cause Notice. Hence, the demand of penalty is not maintainable under provisions of Rule 15 which is a general Rule in terms of the Hon ble Supreme Court s decision in the case of Amrit Food Products reported in 2005(190) ELT 433(SC). After analy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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