TMI Blog2015 (6) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... nvat credit on many items and even though initially the demand was issued for an amount of ₹ 60,27,939/-, finally the Commissioner has confirmed only an amount of ₹ 13,34,445/-. It is also seen that the items on which the credit has been denied are undoubtedly used in the factory. It is only due to interpretation of whether the said items would be covered within the definition of capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a show cause notice was issued to them proposing to deny cenvat credit amounting to ₹ 60,27,939/-. The case was adjudicated vide the impugned order wherein the Commissioner has confirmed a demand of ₹ 13,34,445/-. The Commissioner has also confirmed interest on the said amount and imposed penalty equivalent to the duty confirmed, under Rule 15(2) of the Cenvat Credit Rules read with S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant stated that even though they have filed an appeal for an amount of ₹ 8,13,887/- and imposition of equal penalty, they are no more pressing denial of the cenvat credit but they are pressing for imposition of equal penalty under Section 11AC. His main contention for non-imposition of penalty was that it would be seen from the impugned order that they have not suppressed anything fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the cenvat credit only after detection by the departmental officer during the scrutiny of the records. 5. I have considered the submissions of both the sides. The only issue to be decided is whether penalty can be imposed under the facts and circumstances of the case. It is seen that the appellant was setting up a new unit and in that context, they have availed the cenvat credit on many ite ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
