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TMI Blog2016 (12) TMI 1521X X X X Extracts X X X X X X X X Extracts X X X X ..... e of finished goods but soon after they came to know that the inputs could not be used and required to be destroyed, they should have reversed the credit voluntarily under intimation to the department. Having continued to retain the credit after destruction of the same till being pointed out by the department, in my opinion, cannot be construed as a bonafide act. - Levy of interest and penalty c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the period 2006-07. The said inputs could not be used in the manufacture of finished products but were later destroyed in their factory, but the credit availed on it was not reversed. Later, on being pointed out by the department, they reversed the credit of ₹ 2,03,319/-. A show cause notice was issued for appropriation of the said amount with proposal for penalty. On adjudication, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inable in law. Further, he has submitted that personal penalty of ₹ 10,000/- on the employee is also untenable in law in the absence of any evidence of his association in non-reversal of CENVAT credit. 4. Per-contra, the ld. AR for the Revenue submits that appellant had availed CENVAT credit on the duty free inputs imported against advance authorisation on which CVD was paid, with inten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due to some reasons or otherwise the same were not used but destroyed. No doubt, the Appellants are eligible to avail credit on the inputs which were brought to the factory with intention to use in the manufacture of finished goods but soon after they came to know that the inputs could not be used and required to be destroyed, they should have reversed the credit voluntarily under intimation to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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