TMI Blog2013 (12) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... lant and thereafter intimating the department, it cannot be said that assessee had any intention to take wrong cenvat credit by making misstatement or suppressing facts - the provisions of Section 11AC are not attracted and no penalty under Section 11AC of the Central Excise Act, 1944 is imposable – Decided against Revenue. Penalty under rule 15(1) not mentioned in show cause notice – Held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner (Appeals) Vapi. Respondent herein imported duty free PTFE powder under advance license and availed cenvat credit of Rs. 6,77,682/- in the month of March 2008 when actually no CVD was paid. On being pointed out, the respondent reversed the said credit in the month of September 2009 and intimated to Revenue. The range Superintendent asked the assessee to pay interest which was later paid b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme Court judgment in the case of Dharmendra Textiles Industries Ors vs. UOI [AIT-2008-363-SC]. 2. Respondent M/s. Guarniflon India Pvt. Limited, Silvassa, filed memorandum of cross-objection on the ground that their own internal auditors came to know that wrong cenvat credit is taken and the same was intimated to the department in the ER-1 return filed for the month of September 2009. As the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest liability for the period during which the wrongly taken cenvat credit was held by them. Once the wrongly taken credit along with interest was suo-motto paid by the appellant and thereafter intimating the department, it cannot be said that respondent had any intention to take wrong cenvat credit by making misstatement or suppressing facts. Under the circumstances, the provisions of Section 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no intention on the part of the respondent to act in any malafide manner can be attributed in those proceedings. Based on the above observations, it is held that penalty under Rule 15(1) of the Cenvat Credit Rules, not invoked in the show cause notice, cannot be imposed upon the respondent as held by Commissioner (Appeals). Accordingly, cross-objection filed by the respondent is allowed. 6. Base ..... X X X X Extracts X X X X X X X X Extracts X X X X
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