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2017 (9) TMI 407 - CESTAT HYDERABADCENVAT credit - penalty - rejected inputs - credit availed on xerox copies of invoice - case of appellant is that the unit is closed and he may not be able to produce original invoice for availment of CENVAT credit - Held that: - Availment of CENVAT credit on the xerox copy of the invoice seems to be totally irregular and appellant is not able to explain the situation which led to availment of CENVAT credit on the xerox copies of invoices - Keeping in mind that there are no detailed finding as to erroneous availment of CENVAT credit on the rejected inputs and how it has to be attended to, the equivalent amount of penalty imposed by the lower authorities seems to be excessive - penalty is reduced to ₹ 1,00,000/-. Non-payment of central excise duty on the goods manufactured and cleared under job work - it is the claim of the appellant that they were functioning under the provisions of N/N. 214/86 that mandates that the recipient of goods is the manufacturer, on whom the duty liability arises - penalty - Held that: - learned counsel is not able to produce the declaration under Notification No. 214/86, which has to be filed along with acceptance of the job work with the jurisdictional authorities. In the absence of any such declaration, in my view the penalty imposed by the lower authority seems to be correct - penalty upheld. Penalty u/r 25 - Held that: - there being contravention of the provisions of CER, 2002, imposing penalty under Rule 25 is correct, however, keeping in mind the factual submissions that the appellant's unit is closed, the ends of natural justice will be met if the penalty imposed for this issue of contravention of Central Excise Rules 2002 is reduced to ₹ 75,000/-. Appeal allowed - decided partly in favor of appellant.
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