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TMI Blog2013 (1) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent. [Order]. - The challenge in the present appeal is to penalty of Rs. 8,54,172/- and of Rs. 40,687/- imposed upon the appellant in terms of Rule 15(2) of Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. 2. After hearing both the sides duly represented by Shri and Shri, I find that the appellants were engaged in the manufacture of detergent powd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant for confirmation of credit so availed as also for imposition of penalties on the allegation that as their factory was closed, there was no requirement of any inputs and as such bringing the inputs in their factory, availing the credit and then clearing the same inputs as such, by reversing the credit is in contravention of the provisions of Cenvat Credit Rules. Accordingly, the adjudicating au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urer to clear the inputs 'as such' on reversal of the credit so availed. This is what the appellants have exactly done though I really fail to understand the reason for first bringing inputs in the factory, availing the credit and then immediately sending the said inputs to another person on reversal of Cenvat credit. Be that as it may be, the fact remains that the appellants have not availed any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs as such, there is no requirement of law for reversal of input services credit. The appellants are entitled to use said credit, as and when they start the production of their final product. As such, on this ground, also I find no reason to impose penalty. 7. In a nutshell, penalties imposed upon the appellants are set aside and appeal is allowed to that extent. (Order pronounced in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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