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TMI Blog2017 (5) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant period i.e. after 10.9.2004. They availed CENVAT credit on the input services namely, insurance service for which the Policy commenced with effect from 1.7.2004 to 30.6.2005, 6.8.2004 to 5.8.2005, 28.8.2004 to 27.8.2005 and 11.8.2004 to 10.8.2005, since the appellants had availed proportionate credit of the premium paid under invoice/bill raised prior to 10.9.2004, alleging that such proportionate credit is not admissible, show cause notice was issued on 18.3.2011 for appropriation of the credit already reversed and recovery of interest with proposal for penalty. On adjudication, the credit already reversed was appropriated and the interest on the said amount was directed to be paid with equal amount of penalty under Rule 15(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal taking into consideration the facts upheld the extended period of limitation. Hence, the said ratio is squarely applicable to the facts of the present case and rightly followed by the ld. Commisisoner (Appeals). 6. I have carefully considered the submissions of both sides. I agree with the contention of the ld. A.R. for the Revenue that Rule 9(i)(f) deals with the document and accounts required for availing CENVAT credit, and this rule was not brought to the notice of the Tribunal in G.H.C.L. Ltd. (supra); whereas considering the said Rule in Ester Industries Ltd., this Tribunal observed as follows: "6. I have considered arguments on both sides. This is a case where credit is taken contrary to provisions in Rule 9(1)(f) of Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of penalty I find that Rule 15 of Cenvat Credit Rules does not mandate imposition of penalty equal to wrong credit taken. Further even under Section 11AC the assessee is to be given an option to pay 25% of the duty evaded as penalty within 30 days of receipt of the order for final closure of the matter. No such option has been given in this case. So I find it proper to give an option to the appellant to pay, within 30 days of receipt of this order, the duty demanded, interest thereon and 25% of the duty amount as penalty for final closure of the case. If such payment is not paid the penalty shall get restored to the amount equal to wrong credit taken." 8. Therefore, in the present case also, the benefit of discharging 25% of the penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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