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2015 (10) TMI 1835 - AT - Central ExciseReversal of credit for use of inputs in generation of electricity - Imposition of penalty - Rule 15(2) of the Cenvat Credit Rules, 2004 - Captive consumption - Bagasse - Held that:- There was justification for the appellant to entertain the belief that it was outside the purview of Rule 6 and there was no requirement for reversal the cenvat credit. However, once the cenvat credit has been reversed along with interest, there was no requirement for the Central Excise department to proceed further for imposition of penalty, especially by invoking the provisions of Rule 15(2) of the Rules, which, in clear and unambiguous terms provides that in case of fraud, collusion, or wilful mis-statement, or suppression of facts with intent to evade payment of duty, the said provision can be invoked and not otherwise. The record reveals that suppression, misstatement etc., cannot be alleged against the appellant, since a genuine belief regarding non-maintenance of separate accounts was entertained by it. Admittedly, non-reversal of cenvat credit in the present case is not attributable to any fraud, collusion, mis-statement etc., and accordingly, provisions of Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 cannot be invoked for imposition of penalty on the appellant. - there was no justification for invoking the provisions of Rule 15(2) of the rules for imposition of penalty in the impugned order. - Therefore, the impugned order is set aside - Decided in favour of assessee.
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