TMI Blog2011 (2) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... be penalized under the provisions of Section 15(3) for an amount of Rs. 2000/- only. The provisions of Rule 15(4) cannot be invoked in this case as it is undisputed that the appellant is a manufacturer and not provider of output services. In view of the above, I modify the impugned order of the learned Commissioner (Appeals) to the extent that penalty imposed by the adjudicating authority under Section 11AC and as upheld by the learned Commissioner (Appeals) is set aside, while holding that the appellant is liable to be penalized and penalty imposed by the adjudicating authority should be in accordance with Rules 15(3) of the CENVAT Credit Rules, 2004 i.e. Rs. 2000/-. - E/851/2009 - 102/2011 - Dated:- 9-2-2011 - Shri M.V. Ravindran, J. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of Rules 3, 4 and 6(2) read with Rule 6(5) of Central Excise Rules, 2004. Therefore, the appellants were issued a show cause notice dated 15-10-2007 proposing to disallow and demand the cenvat credit amounting to Rs. 5,18,217/- along with interest. Imposition of penalty under Section 15(3) 15(4) of Central Excise Rules, 2004 was also proposed. 3. The adjudicating authority confirmed the demands raised and appropriated the amounts paid by the assessee along with interest. In addition, he imposed penalty under Rule 15 of the CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. Aggrieved by such an order, the appellant preferred an appeal before the learned Commissioner (Appeals). The learned Commissioner (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee, provisions of Rule 15(2) also will apply or Section 11AC would apply. 6. I have considered the submissions made by both sides. I find that the learned Commissioner (Appeals), while upholding the penalty under Section 11AC of the Central Excise Act, 1944 read with Rule 15(3) and 15(4) of the CENVAT Credit Rules 2004, has held as follows : 10. Further with regard to imposition of penalty the appellant has submitted that penalty under rule 15(4) is applicable only for service providers and not for manufacturers. For manufacturers availing wrong credit the provision of rule 15(3) of CENVAT Credit Rules, 2004 is applicable under which the maximum penalty would be only Rs. 2,000/-. The appellant has also submitted that wrong availme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontravention of any of the provisions of the Excise Act or the rules made thereunder with intention to evade payment of duty, then, the manufacturer shall also be liable to pay penalty in terms of the provisions of section 11AC of the Excise Act. (3) If any person, takes CENVAT credit in respect of input services, wrongly or in contravention of any of the provisions of these rules in respect of any input service, then, such person, shall be liable to a penalty which may extend to an amount not exceeding two thousand rupees. (4) In a case, where the CENVAT credit in respect of input services has been taken or utilized wrongly by reason of fraud, collusion, willful misstatement, suppression of facts, or contravention of any of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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