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2016 (8) TMI 442 - AT - Central ExciseImposition of penalty on partner - wrong availment of Cenvat credit by partnership firm - steel scrap received by the partnership firm is not capable of being used for re-rolling purpose - partnership firm have without contesting the matter, reversed the entire Cenvat Credit and did not litigate the matter. Held that:- it is found that the present appellant has shown his ignorance about the nature of the product. From the statement it is revealed that though he has not admitted regarding the nature of the goods but when the question was put up before him regarding the statements of various dealers. He has admitted that they are not verifying documentary evidences which show that whether the waste and scrap received by them is re-rollable scrap. The appellant could not give satisfactory reply to the facts of the nature of the input on which they have taken the credit. Accordingly, as per the thickness of the material the same is not capable of being used in the manufacture of the final product, it is also fact that the partnership firm of the appellant admittedly paid the entire amount of Cenvat Credit and have not contested. Therefore, the penalty of ₹ 2 lakhs imposed on the appellant is on higher side and be reduced to ₹ 50,000/-. - Decided partly in favour of appellant
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