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2018 (9) TMI 818 - CESTAT HYDERABADPenalty under Rule 25 read with Sec.11AC - wrongful utilization of CENVAT credit - GTA Services - Held that:- The appellant had cleared goods and had paid Central Excise duty by the due date by wrongly utilizing the CENVAT credit which was taken after the close of the month in violation of Rule 3(4) of the CENVAT Credit Rules, 2004. The show cause notice does not propose to demand Central Excise duty - The penalty under Rule 25 read with Sec.11AC equal to the amount of duty is unsustainable because there is no demand for duty at all and is set aside. Penalty under Rule 15 of CENVAT Credit Rules - contravention of Rule 3(4) - Held that:- The same is imposable but the maximum amount during the relevant period is only ₹ 2,000/-. Therefore, the penalty needs to be restricted to this extent. Interest under Rule 14 of CENVAT Credit Rules, 2004 read with Sec.11AB - Held that:- The CENVAT credit is wrongly taken or utilized, an interest thereon is recoverable under Rule 14 of the CENVAT Credit Rules, 2004 - Interest demand upheld. Appeal allowed in part.
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