2006 (11) TMI 441

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..... Order]. - This appeal has been filed by M/s. Elveety Industries Private Limited, Hubli against Order-In-Original No. 23/2006, dated 24-7-2006 passed by the Assistant Commissioner of Central Excise, Hubli Division. 2. Appellants are registered unit engaged in manufacture of Biscuits and are availing the benefit of Cenvat credit. The appellants had availed 100% of Cenvat credit in respect of .....

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..... ;The Cenvat amount involved was reversed almost three months before issue of Show Cause Notice. The adjudicating authority in gross neglect of Section 11A(2B) has imposed high penalty. The error of Rs. 7,082/- in Cenvat Account was due to human mistake which was promptly corrected and also paid with interest. There was no justification to impose penalty as there was no mens rea. The appellant requ .....

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..... re has repeatedly followed this view of Hon'ble High Court of Karnataka that in the event of liability being discharged before the issue of Show Cause Notice no penalty is imposable. 8. I therefore allow the appeal by way of setting aside the penalty imposed under Rule 15 and in other respects the impugned order is upheld. 9. The appeal is accordingly disposed of.
Case laws, Decisi .....

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