Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 150 - AT - Central ExciseImposition of penalty - suppression of facts - whether the appellant herein needs to be visited with equivalent that penalty under the provision of Rule 25(2) of the CCR 2004 read with section 11AA of CEA 1994 or otherwise? - Held that: - appellant herein having clearly recorded that they had availed Cenvat credit on the various inputs as per the Annexure to the ER-I (undisputed) that it cannot be held that appellant had intension to evade the Central Excise duty in availing such Cenvat credit of the Central Excise duty paid on pipes delivered at the site of the customers - during the period in question, provision of Cenvat credit rules also permitted delivery of duty paid inputs directly at the premises of job worker or at the site and Cenvat credit was allowed of duty paid on such materials - The equivalent penalty imposed on appellant, in such a situation is unwarranted. The equivalent amount of penalty imposed on the appellant is not satisfying the ingredients of section 11AC of CEA 1994 and rules made thereunder, accordingly the impugned order to the extent it has upheld imposition of equivalent penalty of ₹ 13,17,930/- is unsustainable and liable to be set aside - As regards, the penalty of ₹ 6,114/- the said penalty is correctly imposed and there is no reason for setting aside such penalties. Appeal allowed in part.
|