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2015 (7) TMI 581 - CESTAT MUMBAIUtilization of wrongful CENVAT Credit - Penalty under Rule 25 read with Section 11AC - violation of the provisions of Rule 8(3A) - Held that:- Appellant has not violated any of the sub-clauses (a), (b), (c) or (d) of Rule 25 (1) and, therefore, no penalty is imposable under Rule 25. It is to be mentioned that the said decision was relating to Rule 8(3) alone. Rule 8(3A) was introduced with effect from 1.6.2006 and the earlier Rule did not have any provision for clearing the goods consignment-wise and in those situations the Hon'ble High Court has come to the conclusion that Rule 25 is not violated and, therefore; penalty cannot be imposed under Rule 25 and in those circumstances, even Section 11AC of the Central Excise Act is not applicable. The position has changed after the introduction of Rule 8(3A) and as in the present case, the goods were cleared without payment of duty consignment-wise and hence the ratio of the said judgment will not be applicable. Further, it is a well settled law by now that in case of taxing statute, various penal provisions are in the nature of civil obligations and do not require any mens rea or wilful intention until and unless the relevant provision provides for the same - appellant has violated Rule 8(3A) and hence the goods covered by the show cause notice are liable to confiscation and the appellant is liable to penalty under Rule 25 of the Central Excise Rules, 2002 - However, penalty is reduced - Decided partly in favour of assessee.
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