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2018 (5) TMI 1511 - AT - Central ExcisePenalty - CENVAT credit - input service distribution - It was detected during the audit that the ISD i.e. Head Office of the assessee has distributed the input service credit wrongly between the units inasmuch as they should have distributed it proportionate to the turnover of different units but they transferred excess transfer on common services to the appellant based in Hyderabad - appellant reversed the credit alongwith applicable interest on being pointed out - Held that: - It is beyond comprehension that the recipient of the invoice or even the departmental officers can be reasonably expected to know the turnover of different units and calculate the percentage of the credit to be distributed to them. This can only come up either through audit or investigation - The only person who should knowing this and distribute the credit appropriately is the ISD and they have violated the rules. As far as the appellant is concerned, he has taken credit on the basis of the invoice wrongly and when pointed out by the audit, reversed the credit and also paid interest thereon. The violation of Rule 7 (d) is on the part of ISD who is the registrant unit in Kolkata. Penalty - Held that: - there is no evidence in the records of fraud, collusion, wilful misstatement or suppression of facts or contravention of any provisions of the Act or Rules with the intent to evade payment of duty on behalf of the appellant which would have rendered him to penalty under Rule 15 (2) read with Section 11 AC of Central Excise Act - penalty set aside. Appeal allowed in part.
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