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2019 (8) TMI 1099 - CESTAT HYDERABADImposition of penalty - CENVAT Credit - Rule 15 (2) of CCR 2004 - HELD THAT:- There is no dispute as to the fact that the appellant had availed the CENVAT Credit on the duty paid on capital goods and also claimed depreciation from the income tax authorities, however, he filed revised income tax returns with the authorities, writing back the depreciation claimed - this would amount to non availment of depreciation as per and in accordance of provisions of CENVAT Credit 2004. The adjudicating authority has taken a conscious note of this and dropped the demand alongwith interest, recording so, very clearly. If that be the case, the question of imposition of any penalty on the appellant does not arise as provisions of Rule 15 (2) of CENVAT Credit Rules 2004 pre- supposes the demand of duty or irregular availment of CENVAT Credit. In the absence of any confirmation of demand, penalty imposed by the lower authorities cannot withstand the scrutiny of law - the appeal is allowed holding that penalty is set aside.
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