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2018 (7) TMI 774 - CESTAT MUMBAICENVAT credit - registered dealer - invocation of Rule 14 of CER - Held that:- Rule 14 of the Cenvat Credit Rules, 2004 deals with the provisions for recovery of wrongly availed CENVAT Credit. The said statutory provisions mandate that where the CENVAT Credit has been taken or utilized wrongly, the same along with interest shall be recovered from the manufacturer or provider of the output service. On reading of the said statutory provisions, it transpires that proceedings can only be initiated against the manufacturer or the service provider - In this case, the appellant No.1 is not confirming to either of the persons/entity mentioned in the said rule - provisions of Rule 14 ibid cannot be invoked for denial of CENVAT Credit to the appellants. Confiscation u/s 119 of the Customs Act, 1962 - redemption fine - Held that:- It is not the case of Revenue that the appellant had used any other goods to conceal the offending goods i.e. “scrap in pressed bundle or loose scraps”. Thus, confiscation of goods under Section 119 ibid is not proper and justified - redemption fine also not warranted. Penalty u/r 26 of CER - Held that:- The provisions of Rule 26 of the Central Excise Rules, 2002 are applicable in case of both the appellants herein for imposition of penalty inasmuch as wrong invoices were issued by them, facilitating of availment of ineligible Cenvat benefit to the buyer of the goods - however, considering the fact that the buyer M/s. TFCWRL has not availed any credit based on the invoices issued by the appellants, the quantum of penalty is reduced. Appeal allowed in part.
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