2012 (9) TMI 781

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..... later rectified, however penal action sustained on ground that admitted mistake by assessee cannot escape penal action - Held that:- It is settled law that once the demands are dropped, then in such a situation, the question of imposing the penalty does not arise - Decided in favor of assessee. - C.E.A. NO. 141 OF 2007 - - - Dated:- 30-7-2012 - N. KUMAR AND H.S. KEMPANNA, JJ. N.R. Bh .....

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..... se Act, 1944. Further, the assessee was asked to show cause why penalty should not be imposed on them under Rules 13/15 of CENVAT Credit Rules 2002/2004 read with proviso to Section 11AC of the Central Excise Act, 1944. 3. The Assessee filed a detailed statement of objections pointing out how the assessee is not liable to pay the said amount. On consideration of the said objections, the Commissi .....

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..... n non-following the mandatory conditions in the course of taking of CENVAT credit cannot be viewed lightly. Therefore, the admitted mistake by assessee cannot escape penal action especially in the backdrop of involvement of huge amount of CENVAT credit. He proceeded to impose a penalty of Rs. 1,00,000/- on the assessee under the erstwhile Rule 13 of CENVAT Credit Rules, 2002 and Rule 15 of CENVAT .....

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