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2009 (11) TMI 252 - MADRAS HIGH COURTPenalty-The first respondent/assessee had taken 50% of the duty paid on the capital goods as Modvat Credit in 1999-2000 and taken Cenvat Credit to the value of Rs.1,42,559/- for capital goods along with spares, received from M/s. Cadmach Machinery Company Limited, Ahmedabad. The Department, therefore issued a show cause notice dated 31-12-2003, calling upon the first respondent/assessee to show cause as to why duty should not be levied on the capital goods under Section 11A along with interest under Section 11AB and levy of penalty under Section 11AC of the Act. After issuance of the show cause notice and during the course of adjudication of the case, the first respondent came forward to reverse the credit, which had been irregularly availed on the capital goods. Held that- the order of the Commissioner of Central Excise (Appeals) dated 31-8-2004 as well as the Appellate Tribunal dated 20-7-2005 insofar as reducing the penalty under Section 11AC is set aside and that of the Original Authority dated 15-6-2004 shall stand confirmed. The question of law is answered in favour of the appellant and the appeal stands allowed.
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