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TMI Blog2017 (4) TMI 990X X X X Extracts X X X X X X X X Extracts X X X X ..... to 1.4.2011. Therefore, the demand of interest is justified. However, as the appellant was eligible to take credit of the balance 50% in the subsequent year, no penalty can be imposed - appeal allowed - decided partly in favor of appellant. - ST/20009/2014 - A/30351/2017 - Dated:- 21-2-2017 - Ms. Sulekha Beevi, C.S. Member(Judicial) Shri V.A.A. Ravi Kumar, Advocate for the Appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on capital goods in the same financial year. A show cause notice was issued proposing demand of interest of ₹ 1,16,674/- and also proposing to impose penalty. After adjudication, the adjudicating authority confirmed the demand of interest and imposed penalty of ₹ 50,000/- under Rule, 15(1) of CCR, 2004. 3. In appeal, the Commissioner (Appeals) reduced the penalty to ₹ 25,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he department, Ld. AR, Sh. P. Murthy reiterated the findings in the impugned order. He submitted that the appellant has taken the entire credit on capital goods in the same financial year. Although they utilised only 50%, it is contravention of provisions of CENVAT Credit Rules 2004 as entire 100% credit was taken in the same financial year. 6. Heard both sides. The Ld. Counsel of appellant con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esent case, the unutilised credit of 50% is shown as credit availed by appellant and the period is prior to 1.4.2011. Therefore, I hold that the demand of interest is justified. However, as the appellant was eligible to take credit of the balance 50% in the subsequent year, I am of the view that no penalty can be imposed. The penalties imposed are set aside. The impugned order is modified to the e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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