TMI Blog2019 (2) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... been made within one year and this has not been done within this time limit - no demand can be made for the interest being time barred. Penalty u/r 15(1) of CENVAT Credit Rules, 2004 - Held that:- To attract penalty under Rule 15(1) of CENVAT Credit Rules, 2004, the person should have taken or utilized CENVAT Credit wrongly or in contravention of the provisions of the Rule - In this case, prima facie there is no evidence of taking credit wrongly by the appellant. It is different matter that the appellant has not disputed and has reversed the credit and is also not contesting reversal of CENVAT credit done by them voluntarily - this is not a case fit for imposition of penalty under Rule 15(1) of CENVAT Credit Rules, 2004. The impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd as already reversed by the appellant under Rule 14 of CENVAT Credit Rules, 2004 read with Sec.11A(1) of the Central Excise Act. He also confirmed the interest of ₹ 5,91,408/- on the above amount under Rule 14 of CENVAT Credit Rules, 2004 and imposed penalty of ₹ 50,000/- under Rule 15 of CENVAT Credit Rules, 2004. Hence, this appeal. 3. Learned counsel for the appellant submits that they had availed credit of capital goods which they had received but which were consigned to their principal manufacturer M/s ALL for whom they manufactured crank cases. Although the capital goods were consigned to M/s ALL, they were all delivered to them and therefore, they were entitled to credit of the goods so used. However, on being pointe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014 (311) ELT 205 (Tri- Del)] e. Ucal Systems Ltd vs. CCE, Chennai [2010 (261) ELT 375 (Tri-Chennai)] f. India Medical Practitioners Co op Pharmacy Stores Ltd vs. CCE, Chennai [2017 (349) ELT 788 (Tri-Chennai)] g. Kailash Auto Builders Pvt Lt vs. CCE, Bhopal [2017 (357) ELT 803 (Tri- Del)] h. Bharat Aluminium Ltd vs. CCE, Raipur [2016 (342) ELT 404 (Tri-Del)] 5. On the question of penalty, she submits that they had no intention to wrongly avail CENVAT credit or utilize it and they had promptly reversed the same and therefore, no penalty may be imposed under Rule 15(1) of CENVAT Credit Rules, 2004. 6. Learned departmental representative reiterates the findings of the lower authority. He submits that the penalty under Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t being time barred. 8. In so far as the imposition of penalty under Rule 15(1) of CENVAT Credit Rules, 2004 is concerned, we find that this rule reads as follows: Rule 15(1): If any person, takes or utilises CENVAT credit in respect of input or capital goods or input services, wrongly or in contravention of any of the provisions of these rules, then, all such goods shall be liable to confiscation and such person, shall be liable to a penalty not exceeding the duty or service tax on such goods or services, as the case may be, or two thousand rupees, whichever is greater. 9. Therefore, to attract penalty under Rule 15(1) of CENVAT Credit Rules, 2004, the person should have taken or utilized CENVAT Credit wrongly or in contr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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