2016 (8) TMI 834 - AT - Central Excise

Imposition of penalty - rule 15(1) of cenvat credit rules,2004 - Held that - for supply of goods by the appellant to M/s DMRC the provisions of Rule 6(6)(vii) do not have any application. The appellant was required to pay an amount equal to 5% of the value of the goods supplied to DMRC, within the stipulated time frame which admittedly has not been done. Since the Provisions contained in the Cenvat Credit Rules, 2004 in the present case has been contravened / violated, the appellant is exposed to the Penal consequences provided under Rule 15 of the Rules. However, considering the overall facts and circumstances of the case, it was found that penalty imposed by the lower authorities in the higher side. Thus, in the interest of justice, the penalty reduced to ₹ 10,000 - impugned order modified - decided partly in favor of appellant.

Summary

The appellant did not contest the demand confirmed in the adjudication order under Rule 14 of the Cenvat Credit Rules, 2004. The issue was regarding the penalty under Rule 15(1) of the same rules. The penalty imposed was reduced to Rs. 10,000 considering the circumstances of the case.