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TMI Blog2011 (11) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... der Rule and then only take credit. Availment of credit without such verification would lead to a conclusion that there was suppression of facts of non-verification/non-compliance with the provisions of rule and therefore mandatory penalty u/s 11AC is attracted. Consequently, the penalty imposed is enhanced to 100% of the duty. Decided against the Assessee. - E/1049/2011 - - - Dated:- 24-11-201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the appellant may not be a party to fraud, but imposed penalty equal to duty. Commissioner (Appeals) concluded that the appellant had not taken steps as envisaged under CENVAT Credit Rules, 2002. But, it cannot be said that they were a party to the fraud. On this ground, he reduced the penalty to Rs.20,000/-. He submits that the very fact that the suppliers were non-existent, which means that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e paid the duty with interest and mere failure to comply with the provisions of Rule cannot lead to the conclusion that there was any suppression of facts with intent to evade payment of duty. They also submitted that Commissioner (Appeals) had held correctly that they were not a party to the fraud. 5. I have considered the submissions made by both sides. Admittedly, the appellants did not t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty under Section 11AC is attracted. This was the ratio in the case of Chintan Processors cited by the ld.Authorised Representative for the Department. In the absence of any credible challenge to the demand of duty and interest, mandatory penalty is imposable and therefore the appeal filed by the Revenue is allowed. Consequently, the penalty imposed is enhanced to 100% of the duty i.e. Rs.2,31 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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