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2017 (8) TMI 61 - AT - Central ExcisePenalty u/r 15(i) of CCR, 2004 - CENVAT credit - GTA services - Held that: - the appellant had availed the CENVAT credit of the service tax paid on GTA services which were utilized by them for outward transportation of finished goods manufactured by them. The period involved in this case is July 2008 to October 2011 and during the relevant period, appellant's could claim that they have entertained a bonafide belief that they can avail the CENVAT credit of the service tax paid on outward transportation can be accepted, as the Larger Bench of the Tribunal in the case of ABB Ltd., [2009 (5) TMI 48 - CESTAT, BANGALORE] has held so being an activity related to the business. Equivalent amount of penalty imposed by the adjudicating authority and upheld by the first appellate authority seems unwarranted, as it is generally imposed only in the case of suppression, fraud, mis-statement of the facts with intent to evade duty. These three ingrediants are not alleged in the show cause notice nor there are any findings of the same in the orders of the adjudicating authority as well as the first appellate authority - the ends of justice may be met in this case if the penalty imposed on the appellant is reduced from ₹ 7,94,122/- ₹ 50,000/- under Rule 15(i) of CENVAT Credit Rules, 2004. Appeal allowed - decided partly in favor of appellant.
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