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TMI Blog2011 (12) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... his appeal filed by the assessee is directed against a penalty of Rs. 25,000/- imposed on them under Rule 15 of the Cenvat Credit Rules, 2004. The assessee had manufactured and cleared their final product (biscuits), one variety on payment of duty and another without payment of duty, during the period from March and April, 2007. They also availed Cenvat credit on all inputs during the said period. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est on the above amounts under Section 11AB of the Central Excise Act read with Rule 14 of the Cenvat Credit Rules, 2004. It also proposed penalty on the assessee under Rule 15 of Cenvat Credit Rules. 2. The aforesaid amounts had been paid by the assessee before issuance of the show-cause notice and such payments were proposed to be appropriated towards the demand. The proposal for penalty w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore the penalty imposed on them is liable to be vacated. Ld. DR opposes the above plea on the strength of the findings recorded by the original and first appellate authorities. She is of the view that substantial relief was given to the assessee by the first appellate authority by reducing the quantum of penalty to Rs. 25,000/-. 4. After examining the provisions of Rule 15 of the Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter, the penalty under challenge cannot be vacated. Though, apparently, substantial relief was given to the assessee by the lower appellate authority, I am of the view that considerations like financial constraints can also have a bearing on the quantum of penalty to be imposed under Rule 15(1). The impugned order does not indicate that this aspect was considered. In the facts and circumstances o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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