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2015 (3) TMI 422 - AT - Central ExciseDenial of CENVAT Credit - penalty under Rule 13 of the CENVAT Credit Rules, 2002 - Held that:- Penalty under Rule 13 can be imposed on the person who is taking credit. In this case, the credit has been taken by M/s. Anthea Aromatics P. Ltd. and not by Shri Vincent Paul. Therefore, following the aforesaid decision, I hold that the penalty on Shri Vincent Paul is not sustainable - Coming to the penalty imposed on M/s. Anthea Aromatics P. Ltd. the show-cause notice alleges that assessee has intentionally/wrongly availed credit. When the department is also of the view that credit has taken wrongly then it cannot be held that it has been taken intentionally, as ‘intentionally' and ‘wrongly' are contrary terms. These terms cannot be applied concurrently. Therefore, the conclusion is drawn that the appellant has taken credit wrongly. Therefore, the penalty under Rule 13 (2) cannot be imposed. - Commissioner has observed that penalty under Rule 13(1) can be imposed on the appellant but he further observed that the appellant has not been able to make out a case for reduction of penalty. But he failed to discuss why the appellant has not made out a case for reduction of penalty. In this case, the appellant has apparently lost the refund admissible to them. Therefore, the appellant has made out a case for leniency in imposing penalty - Penalty reduced - Decided partly in favour of assesse.
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