2017 (5) TMI 281

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..... ant and availed CENVAT credit of the duty paid, which was reversed on being pointed out - Held that: - Imposition of penalty under Rule 15 of the CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 is incorrect, inasmuch as the said Rule starts that penalty can be imposed by invoking the extended period only if ineligible CENVAT credit is availed with an intent to evad .....

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..... This appeal is directed against Order-in-Appeal No:PI/VSK/54/2010 dated 29/03/2010 passed by the Commissioner of Central Excise (Appeals), Pune - I. 2. Heard both the sides and perused the records. 3. On perusal of the records it transpires that the issue is regarding availment of CENVAT credit of the countervailing duty paid on the raw materials imported by the appellant. Appellant imp .....

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..... ilised and therefore cleared as scrap. The adjudicating authority confirmed the demand raised, appropriated the amount paid and also demanded interest and imposed equivalent amount of penalty. The appellant contested only the penalty before the first appellate authority. It was also the case before the first appellate authority that since the issue is covered by issuance of earlier show cause noti .....

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..... he CENVAT credit availed. Imposition of penalty under Rule 15 of the CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 is incorrect, inasmuch as the said Rule starts that penalty can be imposed by invoking the extended period only if ineligible CENVAT credit is availed with an intent to evade duty. In the case in hand, the appellant had discharged the countervailing .....

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..... y the first appellate authority. 5. As regards the interest, I find that the appellant requires to discharge interest as held by the Hon'ble Supreme Court in Commissioner of Central Excise, Mumbai-I v. Bombay Dyeing Mfg. Co. Ld. 2007 (215) ELT 3 (SC). The Hon'ble apex Court in the case of Union of India v. Ind-Swift Laboratories Ltd 2012 (25) STR 184 (SC) has held that interes .....

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