9911796707
TMI Blog2017 (11) TMI 835X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is unwarranted - penalty set aside. Appeal allowed - decided in favor of appellant. - ST/20834/2016-SM - 22685/2017 - Dated:- 2-11-2017 - Shri S.S Garg, Judicial Member Shri Raghavendra B. Hanjer Advocate For the Appellant Shri Parasivamurthy, Deputy Commissioner (AR) For the Respondent ORDER Per: S.S GARG The present appeal is directed against the impugned order dated 10.03.2016 passed by the Commissioner whereby the Commissioner has confirmed the demand of interest of ₹ 15,18,104/- (Rupees Fifteen Lakhs Eighteen Thousand One Hundred and Four only) and also appropriated the said amount deposited by the appellant. The Commissioner has also imposed a penalty of ₹ 10,00,000/- (Rupees Ten Lakhs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest amount of ₹ 15,56,151/- (Rupees Fifteen Lakhs Fifty Six Thousand One Hundred and Fifty One only) on 05.10.2015 itself as against the demand for interest of ₹ 15,18,104/- (Rupees Fifteen Lakhs Eighteen Thousand One Hundred and Four only) and in fact the appellant is eligible for the refund of excess interest paid by them. He further submitted that the appellants are the contractors exclusively undertaking the contract work from M/s. Wind World India Ltd. and the said company is not regular in payment of contract bills and the same is evidenced by the amount shown as receivables in the Balance Sheet. But the service tax was paid by the appellant out of their own funds by way of bank overdraft and external borrowings. He f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty - Cenvat/Modvat - Inadmissible credit taken - Reversed on being pointed out - HELD : Show Cause Notice issued only for interest and penalty - Credit paid suo motu by appellant - Penalty under Section 11AC of Central Excise Act, 1944 imposable where duty is determined under Section 11A(2) ibid - Here, neither any show cause notice issued nor adjudication order passed in respect of Cenvat amount - No amount determined under Section 11A(2) ibid - Consequently, penalty under Section 11AC ibid, not imposable - Order Set aside - Section 11AC of Central Excise Act, 1944 read with Rule 15 of Cenvat Credit Rules, 2004 . 4. On the other hand the learned AR reiterated the findings of the impugned order. 5. After considering the submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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