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2009 (12) TMI 352 - CESTAT, CHENNAICenvat Credit- case the appellants took credit on the impugned capital goods in the year 2000 and utilized the same thereafter. In the year 2003-04, the impugned goods were sent to their job worker. As per rules, the same were required to be returned back to the appellants within 180 days. However, this was not done and after detection by the Department, the appellants reversed the credit on the impugned capital goods in November, 2005. Held that-, the entire amount of credit involved has again been allowed by the Department to be re-credited to the account of the appellants, this can hardly be held to be a case of mis-statement, fraud, suppression etc. In any case, as argued by the learned Counsel, Rule 15(2) clearly applies in respect of cases where credit has been taken or utilized wrongly whereas this was a case of contravention of Rule 3(5) of the Cenvat Credit Rules, 2004. In my considered view, such contravention would attract penal provisions not under Rule 15(2) but under the second part of Rule 15(1) which applies to contravention of any of the provisions of the Rules in respect of any input or capital goods. A contravention of Rule 15(1) attracts both confiscation and penalty.
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