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2014 (3) TMI 791 - AT - Central ExcisePenalty – Denial of Cenvat credit on Boomer Tattoo - manufacture of chewing gum/bubble gum - Earlier tribunal [2010 (2) TMI 443 - CESTAT NEW DELHI] has disallowed the credit as Tatoos/Printed Transfer were being supplied as complementary items not eligible for credit - demand with interest and penalty was confirmed. - In respect of penalty HC has remanded back the order for reconsideration – Held that:- If the credit was being availed by reflecting the same in the statutory records and proper ER-1 returns were being filed, it cannot be said that there was any suppressions on mis-statement with any malafide intent on the part of the assessee - issue involved in the present appeal is of legal interpretation of the provisions of Modvat Rules and is capable of interpretation in favour of the assessee also. As such the respondents cannot be faulted upon for availing the benefit of Modvat credit in respect of Tattoos so as to impose penalty upon them - no reason to impose any penalty on the respondents - denial of Modvat credit upheld, penalty is not required to be imposed - Decided partly in favour of Reveue.
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