2011 (4) TMI 1190 - AT - Central Excise

Penalty - Cenvat credit denied in respect of corrugated boxes on the ground that the appellants have not produced the relevant documents - Proof - Held that - The original authority, was right in denying the credit as burden to prove eligibility of cenvat credit is on the appellants - However, he has not given any valid reason to impose penalty under Rule 15(1) and Rule 15(2) of Cevant Credit Rules, 2004 - Therefore, set aside the penalty in total - denial of credit and consequent order of recovery along with interest is upheld.

Summary

The Appellate Tribunal CESTAT, Delhi upheld the denial of credit of Rs.25,505 for corrugated boxes due to lack of relevant documents. Penalties under Rule 15(1) and Rule 15(2) of Cenvat Credit Rules, 2004 were set aside as no valid reasons were provided for imposing them. Recovery of credit amount with interest was upheld.