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2015 (10) TMI 1816 - CESTAT NEW DELHIPre-deposit of penalty amount by utilizing cenvat credit - Penalty under Rule 15(2) of Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 - Held that:- It is axiomatic that Cenvat credit could be availed only for remittance of duty and interest and not for penalty. Since the appellant had remitted the disallowed component of Cenvat credit and the interest thereon by reversing from his Cenvat account and such reversal or debit to the Cenvat account cannot be utilised for remittance of penal liability under the Act, the obligation of the appellant to remit 7.5% of the penalty imposed by the impugned order, is unavoidable. - appellant shall remit the compulsory deposit in cash within four weeks - Decided against assessee.
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