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2019 (7) TMI 1606 - CESTAT NEW DELHILevy of penalty u/r 15 of CER and Rule 27 of CER - short payment of Central Excise Duty - Valuation of free supplies provided by the Indian Railways to the appellant done in wrongful manner - HELD THAT:- The penal provisions under Rule 15 can be invoked only in the circumstances where the cenvat credit is availed wrongly or any contravention of the provisions of this Rule - in the instance case, the cenvat credit has rightly been availed by the appellant which was debited wrongly. As the Central Excise duty has already been paid from PLA on the same goods and, therefore, we feel that its wrong on the part of the appellant to revoke the provisions of Rule 15(1). In this case we find that the adjudicating authority has erred in imposing penalty of Rs. Five lakh on the appellant under the provisions of Rule 15 (1) and therefore, the same is set aside. Penalty as per the provisions of Rule 27 of the Central Excise Rules, 2002 - HELD THAT:- The maximum penalty which has been prescribed under Rule 27 of the Central excise Rules is only ₹ 5000/- and the adjudicating authority has erred in imposing penalty of ₹ 25,000/- under Central Excise Rules, 2002 - A penalty under Rule 27 of the Central Excise Rules, 2002 reduced from ₹ 25,000/- to ₹ 5000/- under the relevant provisions of Rule 27. Appeal allowed in part.
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