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2016 (5) TMI 658 - AT - Central ExciseImposition of penalty - Rule 57I (4) read with Rule 173Q (1) (bb) of the Central Excise Rules, 1944 - Cenvat credit wrongly taken on inputs as soon as duty paying documents were received - No intention/suppression to evade Central excise duty - Held that:- as per the procedure prescribed by the Department, credit with respect to inputs can be taken only on receipt of the finished products/intermediate goods from the job workers, when the inputs purchased by the appellant is directly sent to the job worker without receiving the same in the factory. A violation of a procedure prescribed for the convenience of the assesse will be considered as a violation of the procedure prescribed under Rule 57J of the Central Excise Rules, 1944. In the present case, all the consignments manufactured by the job worker were returned by the appellant for further processing within the prescribed time. After weighing all the evidences, bench is of the considered opinion that penalty upon the appellant is imposable under Rule 173Q (1) (bb) of the Central Excise Rules, 1944. However, appellant has only gained in taking Cenvat Credit for a few months because all the consignments have been received by the appellant for further processing within the prescribed time limit. Therefore, a penalty of ₹ 10,000/- upon the appellant will meet the ends of justice. - Decided in favour of appellant by reducing the penalty
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