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2014 (3) TMI 869 - CESTAT AHMEDABADPenalty - Commissioner reduced penalty - Availment of CENAVT Credit - Held that:- show cause notice demanding recovery of cenvat credit was issued under Rule 12 of Cenvat Credit Rules read with Section 11A of the Central Excise Act. The penalty under Rule 15(1) provides that any person taking cenvat credit in respect of inputs or capital goods wrongly or in contravention of any of the provisions of the rules will be liable to penalty not existing the duty on the excisable goods of which any contravention has been committed or Rs. 10,000/- (Rs. 2,000/-) w.e.f. 11-5-07 whichever is greater. Therefore the quantum of penalty leviable will be up to the duty on the excisable goods involved or Rs. 10,000/- or (Rs. 2,000/-) whichever is greater. I find that as per the Order-in-Original the penalty has been imposed under Rule 13(2) [now Rule 15(2)] of Cenvat Credit Rules, 2004 read with Section 11AC of the Act. Rule 15(2) is para materia with the erstwhile Rule 57-I(4) of the Modvat Scheme. Even if a harmonious reading of Rule 15(1) and 15(2) of Rules the contention of the respondent that the penalty cannot be less than the excise duty involved will not find any support legally - Decided against Revenue.
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