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2014 (7) TMI 610 - CESTAT NEW DELHICENVAT Credit - Capital goods - Availment of 100% Credit in first financial year - confirmation of interest in respect of excess availment of credit - Held that:- though the credit was availed premature but the same was actually utilised after it became due to the assessee. In such a scenario, the law declared by the Hon’ble High Court of Karnataka in the case of Bill Forge, [2011 (4) TMI 969 - KARNATAKA HIGH COURT] would apply. Confirmation of interest set aside. Penalty under Rule 15(1) of CENVAT Credit Rules, 2004 - In terms of provisions of Rule 15(1) of CENVAT Credit Rules, 2004, which provides for imposition of penalty not exceeding the duty or ₹ 2,000, in cases where the assessee takes CENVAT credit in contravention of any of the provisions of these Rules. It is seen that no mala fide intent condition is pre-requisite for imposition of penalty under the said sub-rule. Admittedly, in the present case, appellants have taken the excess credit though not utilised, in contravention of provisions of sub-rules. As such, I am of the view that the appellant is liable to penalty in terms of the said Rule. However, keeping in view that the excess credit, though taken by the assessee, was not actually utilised by them and as such no undue gain stands availed by them - Penalty of ₹ 20000 imposed on assessee - Decided partly in favour of assessee.
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