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TMI Blog2011 (7) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... ocessed manmade fabrics. It was detected that they had availed cenvat credit on the invoices issued by 12 units or suppliers of grey fabrics totally amounting to Rs.6,89,682/-. Subsequent enquiries showed that these units or suppliers did not exist. Since the invoices appeared to be fake, the availment of cenvat credit was incorrect and required to be recovered. On adjudication, the original adjud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld perpetuate the fraud, does not permissible in law. Finally, it was contended by the Revenue that the original adjudicating authority has correctly imposed penalty equal to duty demanded/invoking Section 11AC and even if penalty is held to be invoked under Rule 13(1) of Cenvat Credit Rules, 2002 it cannot be less than the central excise duty involved applicable in cases of fraud willful mis-sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cenvat credit had been taken and utilized. The noticee is therefore required to pay the amount taken as Cenvat credit in terms of Rule 12 of the Cenvat Credit Rules, 2002 read with Section 11A of the Central Excise Act, 1944. Further the aforesaid act of the noticee amounts contravention of the provisions of the Rule 7(2) of Cenvat Credit Rules, 2002 and also suppression of relevant facts, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent has not made any effort to confirm the existence of supplier of goods and the person who issued/generated/prepared the invoices to verify the correctness of duty amount on the basis of which they availed the credit. The respondents never disclosed this fact but suppressed it. 6. Now coming to the issue of penalty to be imposed under Rule 15(2) as invoked in the show cause notice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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