2012 (12) TMI 532

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..... h the assessee is a service provider. However, in the instant case appellant is a manufacturer and not service provider. Thus, in our view Rule 15(4) is also not attracted. At best, the appellant can be penalised under Rule 15(3) to the extent of Rs. 2,000/- - thus impugned order is set aside and amount of penalty is modified to Rs. 2,000/- in accordance with Rule 15(3) of CRR, 2004.
Justice Ajit Bharihoke, Shri Rakesh Kumar, JJ. REPRESENTED BY : Shri Mayank Garg, Advocate, for the Appellant. Shri Bharat Bhushan, DR, for the Respondent. [Order per : Justice Ajit Bharihoke, President]. - This appeal is directed against Order-in-Appeal dated 20th September, 2011 whereby the Commissioner (Appeals) upheld the Order-in-Original confirmin .....

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..... ellant as to why he should not be directed to pay interest on late payment and why penalty should not be imposed on him under Section 11AC of the Central Excise Act read with Rule 15 of Central Excise [Cenvat Credit (sic)] Rules, 2004. After giving opportunity of being heard the Asst. Commissioner Central Excise, Firozabad confirmed the demand of interest and disallowed Cenvat credit and also imposed penalty of Rs. 2,16,154/- under Rule 15 of Cenvat Credit Rules, 2004 read with Section 11AC of Central Excise Act, 1944. Appeal preferred by the appellant was dismissed by the Commissioner (Appeals). 2. Learned Counsel for the appellant at the outset submitted that the appellant is not disputing the impugned order inasmuch as demand of in .....

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..... e proper to have a look on Rule 15(2) & (4) of Cenvat Credit Rules, 2004 (pre-amended) which reads thus :- "15(2). In case, where the CENVAT credit in respect of input or capital goods has been taken or utilized wrongly on account of fraud, wilful mis-statement, collusion or suppression of facts, or contravention of any of the provisions of Excise Act or the rules made thereunder with intention to evade payment of duty, then, the manufacturer shall also be liable to pay penalty in terms of the provisions of section 11AC of the Excise Act. (3)…………………. (4) In a case, where the CENVAT credit in respect of input services has been taken or utilized wrongly by reason of fraud, collusio .....

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