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TMI Blog2013 (1) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... ctory was closed and no production of said product - Avail CENVAT credit by procuring one of the raw materials during that period - Raw material so obtained was being cleared ‘as such’ under the cover of invoices - Reverse the Cenvat credit so availed - Rule 2(k)(i) of Cenvat Credit Rules, 2004 - Rule 3(4)(b) of the Cenvat Credit Rules - Held that:- In the absence of any mala fide and keeping in v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 26-6-2012 - Ms. Archana Wadhwa, J. REPRESENTED BY : Shri Amit Awasthi, Advocate, for the Appellant. Shri R. Jagdev, AR, for the Respondent. [Order]. The challenge in the present appeal is to penalty of Rs. 8,54,172/- and of Rs. 40,687/- imposed upon the appellant in terms of Rule 15(2) of Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. 2. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oices issued by the appellant and by reversing the Cenvat credit so availed by them. 3. Proceedings were initiated against the appellant for confirmation of credit so availed as also for imposition of penalties on the allegation that as their factory was closed, there was no requirement of any inputs and as such bringing the inputs in their factory, availing the credit and then clearing the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vat credit taken on inputs, if such inputs are removed as such. As such, I find that legal provisions itself allow the manufacturer to clear the inputs as such on reversal of the credit so availed. This is what the appellants have exactly done though I really fail to understand the reason for first bringing inputs in the factory, availing the credit and then immediately sending the said inputs t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of Cenvat Credit Rules, they are entitled to avail the credit of Service tax so paid. At the time of clearance of the inputs as such, there is no requirement of law for reversal of input services credit. The appellants are entitled to use said credit, as and when they start the production of their final product. As such, on this ground, also I find no reason to impose penalty. 7. In a nuts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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