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2013 (1) TMI 145 - CESTAT BANGALOREEnhancement of penalty - Wrong availment of CENVAT credit - Rule 12 of the CENVAT Credit Rules, 2002 - Penalty under Rule 15(1) - Import duty-free inputs under advance licences issued by the DGFT - Excisable goods manufactured from these inputs were supplied to Power Grid Corporation of India Limited (PGCIL) without payment of duty in terms of Notification No.108/95-CE dated 28.8.1995 - These products were intended to be used in the execution of PGCI's project financed by World Bank - However, as World Bank loan did not materialize, a major condition attached to Notification No.108/95-CE remanded without compliance - PGCIL decided to discharge central excise duty liability in respect of the goods supplied to them by the appellant - Also paid the custom duties (BCD + CVD + SAD) foregone in respect of the inputs (components) imported by the appellant under DEEC scheme - Following this payment of duties of customs by PGCIL, the appellant took CENVAT credit of the CVD - Subsequently, World Bank funding of PGCIL's project was cleared and eventually the customs duties paid by PGCIL came to be refunded to them - SCN issued on ground that challan used for availing CENVAT credit was not a valid document for such availment of credit Held that:- It is borne on record that the CENVAT credit of CVD taken by the appellant was reversed by them soon after the changed circumstances were noted by them. The enhancement of penalty by the lower appellate authority is, therefore, not justifiable. In favour of assessee
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