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TMI Blog2010 (1) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... of the show-cause notice in question. The show-cause notice, which invoked the extended period of limitation, proposed to appropriate the above debits in Cenvat account towards the demand of duty raised under the proviso to Section 11A(1) of the Act. It also proposed to impose a penalty on the respondent under Rule 13(2) of the Cenvat Credit Rules, 2002 read with Section 11AC of the Central Excise Act for the breach/violation of the Cenvat Credit Rules, 2002 as discussed above . The relevant allegation, raised and discussed in earlier paragraphs of the show-cause notice, was that the noticee had violated the provisions of Rules 3 and 6 of the Cenvat Credit Rules, 2002. It was alleged, in one part of the show-cause notice, that the notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t by that authority. 3. The learned Counsel for the respondent has contested this submission. He has also submitted that, during the material period, there was no legal obligation for the respondent to reverse the Cenvat Credit in question. It is pointed out that the liability to reverse Cenvat Credit on inputs or capital goods written off the records was introduced, for the first time, in May, 2007. It is submitted that prior to 11-5-2007, there was no such liability for a manufacturer of final product to reverse the Cenvat Credit taken on capital goods or inputs written off the books of account. It is argued that the fact that the credit was, however, reversed by the respondent should not be taken as a ground for imposing penalty on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to impose a penalty on them under Section 11AC which was reduced in quantum by the appellate authority. There is no appeal by the party against the penalty maintained by the appellate authority (Rs. 15,000/-), while the appellant wants it to be enhanced to the amount of penalty imposed by the original authority under Section 11AC of the Act. This is not permissible on the facts of this case inasmuch as it was not even alleged in the show-cause notice that the respondent had committed breach or violation of the Cenvat Credit Rules with intent to evade payment of duty - one of the ingredients for a penalty under Section 11AC. 6. In the result, the Revenue s appeal gets dismissed. (Dictated in Court) - - TaxTMI - TMITax - Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X
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