9911796707
TMI Blog2012 (11) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... truments, Transformers etc. The appellants were availing CENVAT Credit on the duty paid inputs used in the manufacture of excisable goods. The appellants were importing the inputs and availing the credit of CVD. During the period in dispute the appellants procured the inputs from M/s Duflon Polymers Ltd. (100% EOU) and availed CENVAT Credit on the actual CVD amount mentioned in the invoices issued by 100% EOU. As per the provisions of Rule 3(6)(a) of the Cenvat Credit Rules, 2002, the CENVAT Credit in respect of goods purchased from an 100% EOU shall be restricted in the following manner:- "50% of (X x(1+ Rate of Basic Customs Duty/100) x (Rate of CVD/100)" In the above formula, "X" denotes the Assessable Value of the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoice issued in the name of 100% EOU and subsequently on pointing out by the Audit Party, the excess amount was reversed along with interest. As the appellants were imported inputs and were taking the credit of CVD amount paid on the imported goods, therefore, in the bona fide belief, the credit of CVD amount mentioned in the invoices issued by 100% EOU, was availed. The appellants also submitted that the show-cause notice invoked the provisions of Rule 13(2) of Cenvat credit Rules, 2002, which were omitted by the Notification No. 12/2003-CE (NT) dated 1.3.2003. As at the time of issue of show-cause notice, Rule 13 of the Cenvat Credit Rules, 2002 were already omitted, therefore, the imposition of penalty is not sustainable. 3. Revenue r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there would be no application of the penalty provision in section 11AC of the Act. On behalf of the assessees it was also submitted that sections 11A and 11AC not only operate in different fields but the two provisions are also separated by time. The penalty provision of section 11AC would come into play only after an order is passed under section 11A(2) with the finding that the escaped duty was the result of deception by the assessee by adopting a means as indicated in section 11AC. 19. From the aforesaid discussion it is clear that penalty under section 11AC, as the word suggests, is punishment for an act of deliberate deception by the assessee with the intent to evade duty by adopting any of the means mentioned in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
