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TMI Blog2018 (5) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... s appeal is directed against the impugned order dated 12.12.2017 passed by the Commissioner (Appeals), CGST and Central Excise, Indore. 2. Brief facts of the case are that the appellant is engaged in the manufacture of welding electrodes/ saw flux, falling under Chapters 83 & 38 respectively of the Schedule to the Central Excise Tariff Act, 1985. The appellant avails Cenvat Credit in respect of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it-I) had no balance in its Cenvat account, it cannot pay Service Tax from the said account and is required to pay the same in cash. Accordingly, it was held that the appellant had short paid Service Tax amount of Rs. 4,12,058/-. Subsequently, the appellant had deposited such amount vide challan dated 05.02.2015. The Department initiated Show cause proceedings against the appellant, seeking for re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by unit I for payment of Service Tax under Centralized registration. Thus, she submits that payment of Service Tax by Unit-I from the Cenvat Account of Unit-III is proper and justified and as such, denial of Cenvat benefit alongwith interest and imposition of penalties by the authorities below are not in conformity with the statutory provisions. She also submits that the proceedings are barred by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ords. 6. It is an admitted fact on record that at the time of debit in the cenvat account for an amount of Rs. 4,12,058/-, the appellant herein (Unit-I) had no balance in its cenvat account and such amount was deposited by it on 05.02.2015. Thus, I am of the view that proceedings initiated against the appellant for recovery of the wrongly availed /utilized cenvat credit by the authorities below i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay penalty under Section 78 of the Act. Since the entire disputed amount of Cenvat Credit was reversed before issuance of show cause notice and the appellant had reflected the transactions in the ST-3 returns, as per the amended provisions of Section 78 of the Act, the penalty should be reduced to 50% of the quantum of penalty confirmed by the authorities below. 7. In view of above, the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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