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2011 (12) TMI 428 - AT - Central ExciseDenial of CENVAT Credit - exemption Notification No. 22/2007-C.E. - Penalty under Rule 15 of the Cenvat Credit Rules, 2004 - Held that:- After examining the provisions of Rule 15 of the Cenvat Credit Rules, 2004, I find that sub-rule (1) provides for confiscation and penalty where any Cenvat credit is taken or utilized in respect of inputs or capital goods or input services wrongly or in contravention of any of these provisions. In the instant case, the assessee obviously contravened Rule 6(3) by not maintaining separate accounts and also Rule 11 by not reversing Cenvat credit on inputs in stock as on the date immediately before opting for exemption from payment of duty on final product under Notification No. 22/2007-C.E. Of course, the credit wrongly taken was subsequently reversed. However, the cause of action for penalty under Rule 15 remained. The rule does not require any mens rea to be established by the Department against the assessee for a penalty. In this view of the matter, the penalty under challenge cannot be vacated. Though, apparently, substantial relief was given to the assessee by the lower appellate authority, I am of the view that considerations like financial constraints can also have a bearing on the quantum of penalty to be imposed under Rule 15(1). The impugned order does not indicate that this aspect was considered - Penalty reduced - Decided partly in favour of assessee.
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