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TMI Blog2006 (4) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... E/429/2005 - Final Order No. 278/2006 - Dated:- 19-4-2006 - [Order] - The subject appeal filed by M/s. Servall Engineering Works Pvt. Ltd. against the Order-in-Appeal passed by the Commissioner of Central Excise (Appeals), Salem in the appeal filed by the department against the Order-in of the Assistant Commissioner, Coonoor Division. In the Order-in Original the Assistant Commissioner had drop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the decision in the case of Mono-Acrylic Manufacturing Company (P) Ltd. v. CC, Amritsar [2001 (138) E.L.T. 694 (Tri. Del.)] fully supported their appeal, wherein a penalty imposed under Section 114A of the Customs Act was set aside for the reason that the show cause notice and the adjudication order had not contained proposal to demand duty and confirmation of demand respectively under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 12 of the Cenvat Credit Rules, 2002 and impose penalty under Rule 13(1) of the Cenvat Credit Rules, 2002. As the original authority had dropped the proceedings. the department filed an appeal and the Commissioner (Appeals) decided the appeal demanding the interest and imposing penalty as proposed in the show cause notice. The demand of interest and imposition of penalty in the circumstances in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as determined under sub-section (2) of Section 28 shall also be liable to pay a penalty equal to the duty or interest so determined." It can be seen that the person liable to pay duty or interest as determined under Section 28 is also to be made liable to pay a penalty equal to the duty amount or interest so determined. Therefore, there is a direct nexus between the duty demanded and the penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es or Rs. 10,000/- whichever is greater. In the show cause notice, it is showed that excess credit of Rs. 8,730/- had been taken wrongly by the appellant. So the imposition of penalty of Rs. 10,000/- in the impugned order is not assailable. As the interest demanded is also in accordance with Rule 12 of the Cenvat Credit Rules, 2002 I do not find any infirmity in the impugned order. The appeal is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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