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2015 (10) TMI 1676 - AT - Central ExciseCENVAT Credit - Penalty u/s 11AC - Factory - department contends that only the bakery/pastry division wherein the excisable goods are getting manufactured shall be regarded as factory of production as per definition of ‘factory' provided under section 2(e) of the Act and the other premises are not connected to the manufacture of excisable goods and hence, cannot be considered as factory - Held that:- Penalty under Section 11AC of the Central Excise Act, 1944 is imposable when there is any fraud, collusions, suppression or mis-declaration of facts on part of the appellant with intent to evade payment of duty. In the present case, I find that there is no suppression or mis-declaration of facts on part of the appellant with intent to evade payment of duty or to avail ineligible CENVAT Credit. Hence, I set aside the penalty imposed under Section 11AC of the Central Excise Act, 1944 read with Rule 15(2) of Cenvat Credit Rules, 2004 read with Rule 25 of Central Excise Rules, 2002 on the appellant. Since the appellant has reversed the credit wrongly availed on pointing out by the department, I direct the appellant to pay the interest till the date of duty was deposited or CENVAT Credit reversed. - Decided partly in favour of assessee.
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