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2014 (10) TMI 373 - CESTAT NEW DELHIPenalty under Rule 15 of Cenvat Credit Rules, 2005 - Shortage in stock - Held that:- Rule 15 of Cenvat Credit Rules, 2004. Sub-rule (1) of the said Rule provides imposition of penalty not exceeding the duty on the excisable goods, where a person has taken the Cenvat credit wrongly or in contravention of any provisions of the said Rules. Admittedly, the said sub-rule is not applicable inasmuch as the dispute does not relate to taking of wrong Cenvat credit. Sub-rule (2) of the said Rule relates to the wrong utilisation of the Cenvat credit taken, on account of fraud, wilful statement, collusion or suppression of facts, etc. Admittedly, in the present case, appellants after taking the Cenvat credit on the sponge iron have removed the said goods with a mala fide intend to utilise the credit so taken. In such situation, the provisions of sub-rule (2) would apply. The said sub-rule provides imposition of penalty in terms of provisions of Section 11AC of Central Excise Act, 1944. Section 11AC of the Act provides if the penalty imposed is deposited within a period of 30 days to the extent of 25%, the penalty shall stand reduced to that extent. Inasmuch as in the present case, the appellant has admittedly deposited the duty along with 25% of penalty within the period specified under Section 11AC of the Act, I am of the opinion that this is a fit case for reduction of penalty. penalty is reduced to 25% of the duty demand - Decided partly in favour of assessee.
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