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2014 (12) TMI 273 - AT - Central ExciseCENVAT credit - availment of full credit of duty on the inputs received from 100% EOU instead of eligible credit - Imposition of equivalent penalty - Held that:- in the first case where inputs were transferred to the other unit, there is no revenue loss at all since credit was not taken in the other unit. In the normal course credit could have been reversed, invoice issued and other unit could have taken credit and therefore there was no revenue loss. As regards the other two amounts, such mistakes can happen because of arithmetical errors. Therefore I find that in this case imposition of penalty on the ground of suppression of fact may not be sustained. Levy of penalty - Once suppression or misdeclaration is established, penalty is mandatory. In this case, the show-cause notice alleged suppression and it was stated that the fact of availment and utilization of CENVAT credit have not been intimated to the Department by the assessee in their monthly ER1 returns or in any manner whatsoever and the same amounts to wilfull suppression with an intention to evade payment of duty. There is no finding clearly that the amounts taken as credit in this case were not part of the total amount of CENVAT credit taken in the ER1 by the assessee in any of the records. Further there is no requirement under the law to intimate to the Department of each and every document on the basis of which credit has been taken. - Decided in favour of assessee.
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