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2017 (12) TMI 1223 - AT - Central ExcisePenalty - 100% EOU - CVD and SAD paid wrongly by utilising credit, which was ought to be paid in cash - Held that: - the Machining Division has wrongly paid the CVD as well as SAD by making use of cenvat credit - In terms of Rule 3(4) of the CCR, 2004, Cenvat Credit cannot be utilised for payment of such customs duties. Consequently, there is no infirmity in the view taken by the adjudicating authority that such duty payment is required to be made only through cash and not allowed to be done by making use of cenvat credit - penalty upheld. Cenvat credit by the Foundry Division of the total duty paid by the Machining Division - Held that: - Cenvat credit was taken wrongly by the Foundry Division since such duty was paid using the cenvat credit account by the machining division and cannot be considered to be payment of duty. The cenvat credit also has been taken on the basis of non prescribed duty paying documents - reversal of such cenvat credit taken alongwith interest and levy of penalties upheld. Appeal dismissed - decided against appellant.
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