2012 (8) TMI 505

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..... cause notice itself, it has been stated that the appellants have availed cenvat credit wrongly, therefore the provisions of Section 11AC are not attracted although, they have violated the provisions of Section 11AC, but not with intention to evade payment of duty. There was no intention to evade duty can also be ascertained by verification of their cenvat credit account, as the appellants are hav .....

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..... t and therefore proceedings were initiated against the appellants for wrong availment of cenvat credit. The appellants reversed the entire cenvat credit availed wrongly along with interest before the issue of Show cause notice. In the adjudication order, penalty under Section 11AC of the Central Excise Act, 1944, has been imposed on the appellant, the same was confirmed by the lower authorities. A .....

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..... s the appellants are having sufficient cenvat credit balance in their account. 3. In view of the above, that the appellants have not violated the provisions of Section 11AC of the Act for imposition of penalty, no penalty is warranted. Accordingly, the impugned order qua imposing penalty under Section 11AC of the Act is set aside. The appeal is allowed to that extent. (Order dictated and p .....

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