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TMI Blog2014 (4) TMI 762X X X X Extracts X X X X X X X X Extracts X X X X ..... lement of such raw material /parts / components used as inputs. Intelligence was received that whenever the raw materials / parts / components were damaged in transit, the appellants claimed insurance of that damaged portion with the insurance company. The insurance claims were inclusive of the excise duty for which the appellants had already availed the cenvat credit. Thus they were availing the benefit of duty credit on the one hand and on the other hand claiming the amount of excise duty element with the insurance company. Summons were issued to the company on 03.06.2005 for producing the details in this regard and statements of the Divisional Manager (Excise) recorded on 11.08.2005 and 26.09.2005. The appellants admitted that they had a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1944, imposition of penalties under rule 15 of the Cenvat Credit Rules read with section 9 and section 11AC of the Central Excise Act,1944 for wrong availment of cenvat credit with intent to evade payment of central excise duty. 3. Show cause notices were issued also for imposition of penalties on the individuals. The appellant contested the issue before the adjudicating authority and adjudicating authority confirmed the demands raised by an order dated 09.01.06 and imposed equivalent amount of penalty and also recovery of interest and personal penalty on the Divisional Manager of the appellants company. Aggrieved by such an order, appellant preferred an appeal before the first appellate authority. The first appellate authority in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the adjudicating authority. As regards the penalty, we find merits in the submissions made by the ld. counsel that since they have paid the amount of duty liability before the issuance of show cause notice, they are eligible to get the benefit of the decision of the Honble High Court of Gujarat in the case of Akash Prints Pvt. Ltd. 2009 (239) ELT 439 wherein Honble High Court of Gujarat has held that if the lower authorities have not extended the benefit of discharge of 25% of the amount of the duty liability as penalty as provided under Section 11AC of the Central Excise Act, 1944, Tribunal is at liberty to extend these benefits to assessee-appellant. From the records we find both the lower authorities have not extended this benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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