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2014 (1) TMI 1650 - AT - Central ExcisePenalty u/s 11AC - Option to pay 25% penalty - CENVAT Credit - Suppression of facts - Held that:- Since the appellant had availed the Cenvat credit even on the value of the inputs not received, therefore, they had reversed the proportionate credit, attributable to goods not received, on being pointed out by the visiting audit party. From the facts, I find that the appellant had received the insurance claim for short receipt of the goods in their factory, but availed Cenvat credit on the total quantity of the inputs, as shown in the Bill of Entry. So while availing the credit, there might not be irregularity, but continuation of the credit in their books of accounts after filing the insurance claim with the authorities, become irregular, as they knew that the entire quantity of the inputs were not received in their factory. Also, from the records, it is evident that the appellant had availed the insurance claim on the total value of shortage quantity including the CVD amount. Thus, there is an element of suppression in the continuation of credit in their books of accounts, after availing the insurance claim. - Consequently, the imposition of penalty under Section 11AC of the Central Excise Act, 1944 is thus sustainable. - impugned order is set aside to the extent of not allowing the appellant to exercise the option to pay 25% of penalty, as prescribed under Section 11AC of the Central Excise Act, 1944. - Decided partly in favour of assessee.
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