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2017 (9) TMI 1248 - AT - Central ExciseCENVAT credit - manufacture of taxable as well as exempt goods - non-maintenance of separate records - Rule 6 (3) (a) of CCR, 2004 - case of appellant is that they have reversed more than the credit than what ought to have been paid by them as per Rule 6 (3) (a) of CCR, 2004, therefore nothing further is required to be paid by them in terms of reversal of cenvat credit. Held that: - It is consistently agreed upon in the SCNs that the appellants had reversed such credit, however, while considering the input credit for reversal, the notices had omitted to consider input service credit reversed, and hence, the credit actually reversed by the appellants has not been calculated correctly. Now the Ld. Advocate avers that the appellant has reversed much more than that required to be reversed by them in the impugned period under Rule 6 (3) (a) of the Rules - such an averment would require to be verified - for the limited purpose for causing verifying the claim of the appellant that the entire quantum of Cenvat credit required to be reversed as indeed been reversed, the matter is remanded for denovo adjudication. Penalty u/r 15 of CCR - Held that: - Rule 15 of the said Rules contains provisions for confiscation and penalty in cases where Cenvat credit in respect of input or capital goods or input services has been taken or utilized wrongly - During the impugned period, provision for imposition of penalty equal to the wrongly taken or used cenvat credit was applicable when such credit was taken or utilized wrongly by reason of fraud, collusion, or willful mis-statement or suppression of facts or contravention of concerned statutory provisions with intent to evade payment of service tax - There is no allegation of suppression or fraud, collusion, willful mis-statement either in the SCNs or in the impugned orders - penalties set aside. Appeal allowed by way of remand.
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