9911796707
TMI Blog2015 (9) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... ant period i.e. 2003-2004 and 2004-2005 claiming it as capital goods. Show Cause cum demand Notice was issued to them on 29/04/2004 for recovery of CENVAT Credit of Rs. 4,84,260/- availed on the Cylinders. On adjudication, the demand was confirmed and the matter travelled upto this Tribunal. 3. By its order No. S-915/A-1252/KOL/2008 dated- 12/12/2008, this Tribunal remanded the matter to adjudicating authority for de novo adjudication considering the argument of the appellant that that CENVAT credit on cylinders could be admissible treating the same as input if not capital goods. Neither side filed Appeal against the said Order. 4. On de novo adjudication, after production of necessary documents, the Ld. Adjudicating authority dropped the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d proceeding, they have placed necessary evidences before the Ld. Assistant Commissioner establishing the use of cylinders in transferring the dutiable gases. Wherever, the cylinders were used for transferring the exempted goods, they accepted their liability and reversed total credit of Rs. 1,21,340/-. In these circumstances, imposition of penalty under Section 11AC equivalent to the credit confirmed in the de novo proceeding is erroneous and untenable in law. It is his submission that the Ld. Commissioner (Appeal) ought to have set aside the penalty under Section 11AC of CEA, 1944. 7. Per contra, Ld. A.R. for the Revenue submits that the applicant had availed CENVAT Credit in contravention of Rule 3 of CENVAT Credit Rules on cylinders wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without taking reasonable steps to ensure that appropriate duty on the said inputs or capital goods has been paid as indicated in the document accompanying the inputs or capital goods specified in rule 7, or contravenes any of the provisions of these rules in respect of any inputs or capital goods, then, all such goods shall be liable to confiscation and such person, shall be liable to a penalty not exceeding the duty on the excisable goods in respect of which any contravention has been committed, or ten thousand rupees, whichever is greater. (2) In a case, where the CENVAT credit has been taken or utilized wrongly on account of fraud, willful mis-statement, collusion or suppression of facts, or contravention of any of the provisions of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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