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2015 (1) TMI 84 - CESTAT BANGALORECENVAT Credit - Belated revised returns filed - Imposition of interest and penalty - Held that:- There is an irregular availment of credit by the appellant which is admitted fact on record reflecting conduct of the appellant as stated above. But the record nowhere exhibits that Cenvat credit irregularly taken was utilised. Accordingly, it can be only held that credit was availed for which levy of interest is justified and there shall be no interference to the levy of interest by the Tribunal. Interest demand is thus confirmed. Insofar as the penalty under Rule 15(1) of CCR, 2004 is concerned, learned adjudicating authority imposed penalty of ₹ 62,04,375/- without following the doctrine of proportionality. Rule 15 of CCR, 2004 does not necessarily require levy of penalty to the extent of Cenvat credit disputed. Penalty is mandate of law to discourage recurrence of default in future. But dose of penalty depends on the facts and circumstances of the case. Following doctrine of proportionality, it is considered appropriate to impose penalty of ₹ 25,000 to reduce the litigation - Decided partly in favour of assessee.
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