2006 (1) TMI 335

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... eal is directed against the Order-in-Appeal dated 3-3-2004 which allowed the appeal of the respondents. The relevant facts arise for consideration are that the respondents are engaged in the manufacture of P P Medicines and were availing Cenvat credit in respect of inputs used relation thereto. The respondents opted for exemption of the finished goods from 1-4-2002. As per provisions of Rule 9(2 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ords. I find that the ld. Appellate Authority has set aside the penalty and interest imposed on the appellant based on the finding that Rule 12 of the Cenvat Credit Rules is applicable in this case. In order to appreciate the correct position, the said Rule 12 of Cenvat Credit Rules is reproduced : 12. Recovery of Cenvat credit wrongly taken. - Where the Cenvat credit has been taken or utilized .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... sions of Rule 12 are clearly attracted in this case. In view of this the order-in-appeal which holds that interest is not payable under Rule 12 is set aside and the respondents are directed to pay the interest on the amount of duty confirmed against them. 5. In respect of the penalty, the order-in-appeal is correct incoming to the conclusion that penalty is not imposable under Rule 13 of the Cen .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X