2012 (8) TMI 861

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... w-cause notice also invoked Rule 15 of the CENVAT Credit Rules, 2004 which expressly made Section 11AC applicable to a case of irregular and fraudulent availment of CENVAT credit. In this factual scenario, the appellant has no case against the penalty imposed under Section 11AC of the Central Excise Act, though they are entitled to the benefit of 1st proviso to Section 11AC of the Act. Indeed, the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... uthority had also given an option to the assessee to pay 25% of the duty amount towards penalty under Section 11AC of the Act within 30 days from the date of communication of the order. This option was exercised by the assessee(appellant) and the same was also upheld by the Commissioner(Appeals). Though, in the present appeal, both the demand of duty and the penalty are under challenge, the learne .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... aid order. This conduct of the party virtually amounted to acceptance of the applicability of the Section 11AC. In this context, it is pertinent to note that the partial payment of penalty was not under protest. This apart, the grounds raised by the assessee in the present appeal are a far cry from the reality which is that the appellant indisputably chose to take CENVAT credit on certain invoices .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X