TMI Blog2013 (6) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... prior to amendment. It is seen that provisions of Section 11AC of Central Excise Act or Rule 15(2) could not be invoked, as the issue was of credit on input services. At the most, for the violations of availing ineligible credit, the appellant can 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. - Maximum penalty imposed equal to Rs. 2000/-. - Appeal No.E/1280/2011 - - - Dated:- 30-1-2013 - Hon'ble Mr. M.V. Ravindran, Member (Judicial) For the Appellant: Shri Vinay Kansara, Adv. For the Respondent: Shri K. Sivakumar, Addl.Commissioner (A.R.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03.2009 was issued to them for recovery of CENVAT credit wrongly availed by the appellant amounting to Rs.1,47,221/- under Rule 14 of the CENVAT Credit Rule, 2004 read with proviso to Section 11 A( 1) of Central Excise Act, 1944, for recovering interest at the appropriate rate under Section 11 AB of Central Excise Act, 1944 and also proposing for imposition of penalty under Section 11AC of Central Excise Act, 1944 read with Rule 15 (2) of CENVAT Credit Rules, 2004. It was also proposed for appropriation of service tax amount and interest already paid by the appellant. 2.2 The show cause notice was decided by the adjudicating authority vide the Order-in-Original, wherein the adjudicating authority confirmed the demand of the CENVAT credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bang) and also the division Bench decision of the Tribunal in the case of Balrampur Chini Mills Ltd 2012 (283) ELT 96 (Tri-Del.). 5. Ld.Additional Commissioner (A.R.) reiterates the findings of the lower authorities. 6. On careful consideration of the submissions made by both sides and perusal of the records, I find that the issue involved in this case is regarding wrong availment of CENVAT Credit of the Service Tax paid by the appellant as a recipient of the services. It is an admitted fact that the appellant was in-eligible to avail such CENVAT Credit of the Service Tax paid and has reversed the entire amount of CENVAT Credit as well as interest thereof on being pointed out. It is also specifically mentioned by the ld.Counsel that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollusion or suppression of facts, or contravention 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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/-. The appeals are disposed off accordingly. It can be seen from the above reproduced ratio that, at the most any penalty that can be imposed on the appellant will be under the provisions of Rule 15(3) of CENVAT Credit Rules, 2004 (prior to amendment) as it was, during the relevant material period. 8. I also find strong force in the contentions raised by the appellant that division Bench of the Tribunal in the case of Balrampur Chini Mills Ltd (supra), will also apply in this case. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
