Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1269 - AT - Central ExcisePenalty u/r 15 (2) of the CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 - due to inadvertence, Development Cess paid on the imported commodity was taken as CENVAT credit, which was reversed on being pointed out - Held that:- The audit officers had not specifically alleged regarding the involvement of the appellant in the activities of fraud, collusion, suppression etc., in defrauding the Government revenue. Thus, under such circumstances, the provisions of sub-rule (2) of Rule 15 read with section 11AC ibid cannot be invoked for imposition of the penalty on the appellant. Also, reliance placed in the case of Gaurav Mercantiles Ltd. [2005 (8) TMI 120 - BOMBAY HIGH COURT], wherein imposition of penalty was set aside, holding that once duty is paid prior to issuance of show cause notice, the proceedings have to be stopped and the department cannot proceed further for imposition of penalty. Penalty set aside - appeal allowed - decided in favor of appellant.
|