TMI Blog2019 (7) TMI 1606X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant to revoke the provisions of Rule 15(1). In this case we find that the adjudicating authority has erred in imposing penalty of Rs. Five lakh on the appellant under the provisions of Rule 15 (1) and therefore, the same is set aside. Penalty as per the provisions of Rule 27 of the Central Excise Rules, 2002 - HELD THAT:- The maximum penalty which has been prescribed under Rule 27 of the Central excise Rules is only ₹ 5000/- and the adjudicating authority has erred in imposing penalty of ₹ 25,000/- under Central Excise Rules, 2002 - A penalty under Rule 27 of the Central Excise Rules, 2002 reduced from ₹ 25,000/- to ₹ 5000/- under the relevant provisions of Rule 27. Appeal allowed in part. - Appeal No. E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned by the appellant: (i) Short paid central excise duty of rs.8,06,66,580/- (Cenvat ₹ 78317068/- + Edu Cess ₹ 1566341/- + S H Educ Cess A₹ 783171/- during the period March, 2011 to June, 2011 in respect of wagons cleared to Railways by not including the value of free supply items in the assessable value of wagons and by wrong availment of benefit of Notification No. 1/2011-CE dated 1.3.2011; (ii) Not paid an amount of ₹ 2,08,35,990/- equal to 5% of the value of exempted goods as required under Rule 6(3)(i) of Cenvat Credit Rules, 2004 during October, 2010 to February, 2011; (iii) Not paid interest of ₹ 9928/- on the amount of duty paid on the price variation bills realized during the period March, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit of ₹ 53,43,267 was in violation of provision of Cenvat Credit Rules, 2004 and therefore, he has allowed the cenvat credit of this amount only on the ground that the duty which was leviable on the goods which were cleared after making debit of the cenvat credit worth ₹ 53,43267 is later on being deducted in their PLA account by making cash / deit on 5.5.2011 along with interest. It is matter of record that the appellant on their own have first debited the equal amount of CE duty from their PLA account and thereafter the duty which was previously debited in their Cenvat credit account which was utilised in March, 2011. The fact that the duty which was in the first instance was paid from accumulated Cenvat credit have later b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 5000/- and the adjudicating authority has erred in imposing penalty of ₹ 27,000/- under Central Excise Rules, 2002 by an amount of ₹ 21 4 000 which is for violation of Rules and which was reduced. A penalty under Rule 27 of the Central Excise RFules, 2002 from ₹ 25,000/- to ₹ 5000/- (Rupees Five thousand only) under the relevant provisions of Rule 27. Thus we are of the view that so far as the penalty of ₹ 5 lakh under the provisions of Rule 15(1) of Cenvat Credit Rules, 2004 is concerned, same is and the amount of penalty of ₹ 25,000/- which was imposed on the appellant under provisions of Rule 27 of Rule Central Excise Rules 2002 is reduced to ₹ 5,000/- (Rupees Five thousand only). A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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