2013 (12) TMI 1487

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..... occurred. The appellant as submitted seems to have paid the same amount twice - Even if the credit had been taken wrongly, apparently it was because of some errors in data entry and not with an intention. That being the position, penalty imposed under Section 11AC cannot be sustained - appeal allowed. - E/944/2011-SM - Final Order No. 27049/2013 - Dated:- 4-12-2013 - Shri B.S.V. Murthy, Member .....

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..... AP system. The ledger maintained by the appellant, according to the appellant reflected the correct position whereas the errors in the SAP system arose because of data entry. When the show cause notice was issued the appellants paid the Cenvat credit with interest. However after appropriating the amount paid with interest, penalty under Section 11AC was imposed. Even though it is the submission of .....

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..... ed. Though it is not a deliberate intention which attracts Section 11AC, it is certainly the contravention of the provisions of Cenvat Credit Rules. 3. For imposition of penalty under Section 11AC mere contravention of Rule is not sufficient and such contravention has to be with an intention to evade payment of duty. Having observed that there was no intention, penalty under Section 11AC shoul .....

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