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2019 (1) TMI 177 - HC - Central ExciseImposition of penalty u/r 26 of CER - fraudulent availment of CENVAT Credit - petitioners are seeking to contend that, although they made a fraudulent representation before the authority in obtaining SENVAT credit, then when the authority found the actual fact that, the petitioners did not indulge in any manufacturing activity, there is no reason for imposition of penalty under the Act of 1944 - Held that:- Such a contention is downright dishonest. The petitioners were well aware about the benefits of CENVAT credit under the provisions of the Act of 1944. It was within their personal knowledge that, the legal entity viz., V.K. Udyog Ltd., was not carrying on any manufacturing activity. In fact, V.K. Udyog Ltd. is under the control and management of the three petitioners before me. These three petitioners cannot feign ignorance of the activities of V.K. Udyog Ltd. Knowing the activities of V.K. Udyog Ltd. they made a false representation to the authorities to avail of CENVAT credit. The are liable for such fraudulent activities - petition dismissed - decided against petitioner.
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