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TMI Blog2011 (9) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... l as the decision of the Hon ble Supreme Court in the case of Ind-Swift Laboratories (2011 (2) TMI 6 - Supreme Court)and the provisions of Rule 14(1), held that some penalty is required to be imposed on the respondents to act as a deterrent resulting in availment of ineligible credit in future - Considering all the aspects of the case as well as the fact that the appellants are admitting to intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e respondents submits that in view of the latest decision of the Hon ble Supreme Court in the case of Union of India Vs. Ind-Swift Laboratories Ltd. 2011 (265) ELT 3 (SC), even though a wrongly taken credit was not utilized the interest is payable. Hence the respondents now admit their liability to pay the interest in terms of the cited decision of the Hon ble Supreme Court. However, as regards th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pheld. 5. However, as regards the penal liability, I find from the two separate provisions under Rule 15(1) and 15(2) of the CENVAT Credit Rules, 2004, the original authority has not specified under which sub-rule the penalty has been imposed but since he has referred to Section 11AC, it is presumed that he has invoked Rule 15(2) for imposition of penalty equal to the excess credit taken. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case. Considering the same, as well as the decision of the Hon ble Supreme Court in the case of Ind-Swift Laboratories (supra) and the provisions of Rule 14(1), I am of the view that some penalty is required to be imposed on the respondents to act as a deterrent resulting in availment of ineligible credit in future. Considering all the aspects of the case as well as the fact that the appellants ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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