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TMI Blog2017 (5) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of 50% availed on capital goods and credit of ₹ 13,922/- availed in excess, it has been admitted by the appellant that the same is not admissible, accordingly the demand of ₹ 31,174 + ₹ 28,963 + ₹ 13,922/- are upheld. Penalty u/s 11AC - Held that: - Since the appellant have admittedly reversed the inadmissible credit even before issuance of SCN along with interest, and taking into consideration the facts and circumstances of the case, there is no suppression of fact on the part of the appellant - penalty not imposable. Appeal allowed - decided partly in favor of appellant. - E/999/10 - A/86573/17/SMB - Dated:- 10-3-2017 - Shri Ramesh Nair, Member (Judicial) Shri H.P. Kanade, Advocate for the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y entitled for 50% of the capital goods credit, therefore the penalty under Section 11AC should not have been imposed. He further submits that the discrepancies were pointed out by audit and immediately thereafter, the appellant reversed credit along with interest. Therefore for this reason, the penalty under Section 11AC should not be imposed. In this regard he relied upon the following decisions: AIMS Inds. 2014 (307) ELT 889 CCE Vs. LVT Inds. P. Ltd. 2014 (606) ELT 174 4. Shri Sanjay Hasija, ld. Supdt. (AR) appearing for the revenue reiterates the findings in the impugned order. He submits that the appellant have availed the credit in respect of doors and panels which was admittedly used in the office, therefore appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the appellant that the same is not admissible, accordingly the demand of ₹ 31,174 + ₹ 28,963 + ₹ 13,922/- are upheld. 9. Now I come to the issue of penalty under Section 11AC. Since the appellant have admittedly reversed the inadmissible credit even before issuance of show-cause notice along with interest, and taking into consideration the facts and circumstances of the case, I do not find any suppression of fact on the part of the appellant; therefore penalty under Section 11AC is not imposable. Accordingly, penalty under Section 11AC imposed by lower authority and upheld by Commissioner (Appeals) is set aside. 10. The appeal is partly allowed in above terms. (Dictated in Court) - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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