TMI Blog2017 (7) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... such, it can be safely concluded that the appellants adopted the system of availing credit of duty paid on capital goods used in the manufacturing activities with an intention to avail credit not available to them and may be to take a chance. It is also a fact that as soon as the objection was raised by officers, the appellants paid back the entire credit immediately along with interest. Taking into consideration that the appellants paid back the credit immediately on being pointed out by the Revenue along with payment of interest and keeping in mind the fact that the penal proceedings were initiated against them, after a gap of three years, I deem it fit to restrict the penalty to 25% of the total duty amount in terms of proviso to sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, proceedings were initiated against them for confirmation of the said debit entries made by the appellants as also for imposition of penalty by way of issuance of a show-cause notice dated 06.04.2014. The adjudication proceedings resulted in passing of the impugned orders, imposing penalty of equivalent amount under Rule 15 (2) of the Cenvat Credit Rules, 2004 read with section 11AC of the Central Excise Act. The order also confirmed the duty as also the interest. 4. As the appellants were aggrieved only with the imposition of penalty, they challenged the said order before Commissioner (Appeals), who upheld the same. Hence, the present appeal. 5. Learned advocate appearing for the appellants submit that the only challenge in the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mits that the fact of filing monthly returns is not relevant inasmuch as, the said returns do not give details of the credit so availed. As such, he supports the impugned orders in imposing penalty upon the appellants. 7. After carefully considering the submissions made by both the sides, I find that the assessee is not disputing the fact that the imported Hydraulic system was not at all used by them in their manufacturing activities and was hired out. It is also a fact agreed upon by the learned advocate that such Hydraulic system was imported by them with an intention to lease out the same inasmuch as the same has no role to play with their manufacturing activity. It is also a fact that the credit of more than ₹ 10 lakhs was avai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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