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2016 (12) TMI 1213 - AT - Central ExciseImposition of penalty - irregular availment of credit - credit reversed before issuance of SCN - rebate claim - Held that: - The appellant is not agitating the issue on admissibility of CENVAT Credit taken in respect to certain inputs. It is the case of the appellant that penalty cannot be imposed upon them as the inputs were used in the manufacture of finished goods exported under bond. However, Ld. Advocate appearing for the appellant could not correlate the fact that inputs used in the manufacture of finished goods exported under bond. It is observed from Order-in-Appeal dated 31/3/2014 passed by the first appellate authority that reasons have been given by upholding equivalent penalty imposed upon the appellant. Under the self-assessment procedure greater trust and responsibility is placed on the assessee to appropriately follow Central Excise procedures and discharge duty. Irregularity in taking CENVAT Credit could be detected only during the course of audit undertaken by the Department. Accordingly, it is held that imposition of equivalent penalty was correctly upheld against the appellant. On merits the appeal filed by the appellant is rejected. However, it is observed from Order-in-Original No. 29/DKN/2012-13 dated 19/2/2013 that adjudicating authority has not given option of 25% of reduced penalty to the appellant under Section 11AC of the Central Excise Act, 1944. Accordingly, appellant is extended the option of 25% reduced penalty imposed under Rule 15 (2) of the CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944, provided the above amount of reduced penalty is paid within one month from the date of receipt of this order. Appeal disposed off - decided partly in favor of appellant.
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