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2016 (1) TMI 819 - AT - Central ExciseInadmissibility of Cenvat Credit on capital goods - Penalty imposed - Held that:- Initially the claim of the appellant was that the cenvat credit would be admissible on cylinders as ‘capital goods’. Later, major portion of the demand was dropped accepting the plea of the Appellant that it is admissible as ‘inputs’. Also, on scrutiny of the de-novo order passed by the adjudicating authority as well as first appellate authority, I do not see any reasoning to support their conclusion of suppression of facts or mis-declaration, while imposing penalty under Section 11AC of CEA,1944 read with Rule 13 of CENVAT Credit Rules,2002. In absence of substantial evidence, supporting suppression of facts/ mis -declaration, in my opinion, penalty under Sec.11AC of CEA,1944 read with Rule 13 of CENVAT Credit Rules,2002 cannot be sustained. Besides, I find that the appellant had debited the credit amount within one month from the issuance of show cause notice and that they have taken the credit declaring the same as capital goods. In the result, the impugned Order confirming imposition of penalty is set aside - Decided in favour of assessee.
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