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2018 (1) TMI 156 - CESTAT HYDERABAD100% EOU - CENVAT credit - reverse charge mechanism - Held that: - appellant have paid back the amount utilized by them for discharging the Central Excise Duty on the goods cleared from their 100% EOU unit. They have also made good the interest part - discharge of Central Excise/Customs Duty to the tune of ₹ 10,04,379/- in cash would mean that Revenue has already received the amount twice. Looking at the entire case from that angle and as also that as an EOU, appellant is eligible to avail the Cenvat credit and could have claimed the refund of such credit, I find that it is fair and just and appellant be allowed to take the credit of ₹ 10,04,379/- which was debited, first towards duty and subsequently paid in cash as per the direction of the lower authorities. Penalty u/s 112 - Held that: - the penalties so imposed under section 112 of Customs Act, 1962 for violation of the conditions of notification, though on the lower side, needs to be modified and I hold that a penalty of ₹ 15,000/- is just in the interest of justice as a deterrent. Penalty u/s 25 of CER, 2002 and u/r 15(1) of CCR, 2004 - Held that: - both these penalties are unwarranted on the fact of the records that appellant had not cleared the goods without payment of duties and has not availed any improper cenvat credit. Penalties imposed under these two heads are also set aside. Penalty u/r 27 of CER, 2002 - Held that: - the said penalty has been correctly imposed and no interference is called for. Penalty u/s 76 of FA - Held that: - appellant could have misunderstood the provision of Section 76 of Finance Act inasmuch, he had availed the credit of the service tax paid under reverse charge mechanism and utilized the same for making the payment - this is a fit case wherein provisions of Section 80 of Finance Act, 1994 are invokable - penalty set aside. Appeal disposed off.
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