TMI Blog2018 (4) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 - Shri M V Ravindran, Member (Judicial) Shri Mihir Mehta, Advocate, for the appellant Shri D S Chauhan, Superintendent (AR), for respondent This appeal is directed against Order-in-Appeal MKK/29/RGD/APP/2017 dated 08/09/2017 passed by the Commissioner of Central Excise (Appeals), Belapur. 2. Heard both the sides and perused the records. 3. On perusal of the records it transpires that the issue is regarding reversal of CENVAT credit under the provisions of Rule 6(3) (i) of the CENVAT Credit Rules, 2004. Appellant herein had availed CENVAT credit on common input services while manufacturing excisable and exempted goods. Appellant's records were audited and it was brought to their notice that they have to revers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty in the impugned order accepted the contention of the appellant and held that reversal of CENVAT credit attributable to the exempted goods is correct and remitted the matter back to the adjudicating authority for the limited purpose of verifying the claim of reversal of credit by the appellant, held penalty equivalent to 50% of the amount of credit availed is imposable under the provisions of Section 11AC of the Central Excise Act, 1944. 4, The claim of the Learned Counsel before the Tribunal is that the penalty imposed by the first appellate authority under Section 11AC of the Central Excise Act, 1944 is not correct. He read out the provisions of Section 11AC and brings to the notice of the bench that identical issue was agitated befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordance with Section of CEA, 1944. Therefore, 1 find that jurisdictional authority is required to calculate the ineligible Cenvat Credit taken for the period from April 2013 to 14.05.2015 and recover 50% of such Cenvat Credit amount as penalty for the said period and further calculate the differential duty and ineligible Cenvat Credit taken for the period from 15.05.2015 to September, 2016 and recover 100% of such Cenvat Credit amount as penalty for the said period. 7. It can be seen from the above reproduced findings of the first appellate authority, that the entire penalty has been imposed on the appellant under the provisions of Section 11AC of the Central Excise Act, 1944. I find that the Learned Counsel was correct in bring to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed by the respondent in terms of Rule 6(3)(b) of the Cenvat Credit Rules. Apart from the above, a perusal of the language of Section 11AC of the Central Excise Act shows that the same would be applicable only if in case where there is an attempt to evade duty. The present case relates to reversal of amount under Rule 6(3)(b) of the Cenvat Credit Rules. We are of the considered opinion that Section 11AC of the Central Excise Act is not applicable in the present case. The findings of the Appellate Tribunal are upheld. 4. In view of the above, we find no merit in the appeal and the same is dismissed. 8. The ratio as laid down by the Hon'ble Punjab and Haryana High Court is to be followed and I do so. 9. In view of the foreg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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