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2013 (9) TMI 381 - AT - Central ExcisePenalty under Rule 15 of the CENVAT Credit Rules 2004 - appellant pleaed that no penalty was attracted where the CENVAT credit in question had been reversed without utilization - Held that:- The penalty was set aside and allow this appeal by way of remand with a direction to the original authority to ascertain the correct facts and take fresh decision on the question whether the appellant is liable to be penalized under Section 15 of the CENVAT Credit Rules 2004 on the ground of contravention of Rule 10 and, if so, to what extent - Needless to say that the appellant should be given a reasonable opportunity of being heard. There was a valid reason for remanding of the case to the original authority for fresh decision on the question whether a penalty under Rule 15 of the CENVAT Credit Rules 2004 was warranted and, if so, to what extent - It appeared from the records that the penalty was imposed for contravention of Rule 3(1) read with Rule 10 of the CENVAT Credit Rules 2004. Rule 3 was a substantive provision providing for CENVAT credit as a benefit to be claimed by a manufacturer of final products or a provider of taxable service - This benefit was allowed on inputs, capital goods and input services - Rule 3 also specifies the purposes for which the credit can be utilized - There were also provisions under Rule 3 which deal with situations such as what to be done with the CENVAT credit taken on inputs or capital goods when such inputs/capital goods are removed as such from the factory – Decided in favour of Assessee.
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