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2011 (2) TMI 553 - AT - Central ExciseCenvat Credit - it can be seen that provisions of sub-rule (2) can be brought into picture only where Cenvat credit, of duty on inputs or capital goods is availed on account of fraud, willful misstatement. Provisions of sub-rule (3) can be brought into play for denial of CENVAT credit of input services and penalty can be imposed as indicated therein prior to amendment. It is seen that provisions of Section 11AC of Central Excise Act or Rule 15(2) could not be invoked, as the issue was of credit on input services. At the most, for the violations of availing ineligible credit, the appellant can be penalized under the provisions of Section 15(3) for an amount of Rs. 2000/- only. The provisions of Rule 15(4) cannot be invoked in this case as it is undisputed that the appellant is a manufacturer and not provider of output services. In view of the above, I modify the impugned order of the learned Commissioner (Appeals) to the extent that penalty imposed by the adjudicating authority under Section 11AC and as upheld by the learned Commissioner (Appeals) is set aside, while holding that the appellant is liable to be penalized and penalty imposed by the adjudicating authority should be in accordance with Rules 15(3) of the CENVAT Credit Rules, 2004 i.e. Rs. 2000/-.
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