2011 (9) TMI 928

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..... ent, the short question to be determined is (a) whether the respondent should be directed to pay interest under Rule 14 of the CENVAT Credit Rules (CCR), 2004 on an amount of CENVAT credit wrongly availed and subsequently reversed as also (b) whether they should be mulcted with any penalty under Rule 15 of the said Rules. The original authority, in adjudication of the relevant show cause notice, d .....

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..... owed on the interest-related issue. It is ordered accordingly. 3. The surviving issue pertains to penalty. The show cause notice in this case proposed a penalty on the respondent under Rule 15 for wrong availment of CENVAT credit vide para 9 of the show cause notice. The entire text of Rule 15 was reproduced in para 8.1 of the show cause notice. From para 9 of the notice, it is clear that the .....

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..... ake . 4. The issue has been debated before me. I have already discussed the penalty-related issue with specific reference to the provisions invoked in the show cause notice and by the adjudicating authority. The notice purported to invoke sub-rule (3) of Rule 15 which provided for maximum penalty of ₹ 2,000/-, but the adjudicating authority chose to invoke sub-rule (4) to impose penalty e .....

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