2007 (6) TMI 535

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..... is filed by the Revenue against Order-in-Appeal No. P-I/125/2006, dated 7-4-2006 which set aside the penalties imposed on the respondents on the ground that the respondent had discharged the entire duty liability and interest thereon before the issuance of show cause notice. 2. The respondents is absent despite notice nor there is any request for adjournment. Since the issue is in a narrow com .....

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..... considered the submissions made by the appellants in the grounds of appeal, written submissions made at the time of personal hearing. I find that the appellants have not disputed the fact that they have wrongly availed Cenvat credit on damaged or defective inputs namely Porcelain Insulators and they had also claimed Insurance for the said damaged goods. However, they have paid the duty and the i .....

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..... 77; 1,11,813/- was paid before the issue of show cause notice. Thus the ratio of the decision is therefore squarely applicable in the present case and the penalty of ₹ 1,11,813/- imposed under Rule 15 of Cenvat Credit Rules, 2004 is liable to be set aside. In view of the above, the penalty is set aside. The duty demand of ₹ 1,11,813/- and recovery of interest under Section 11AB of C .....

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