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TMI Blog2018 (5) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... cation Cess - demand of interest upheld. Penalty - Held that: - this act of non-debiting the basic excise duty would not attract stringent imposition of equal penalty under section 11AC or under rule 15(2) of Cenvat Credit Rules, 2004 inasmuch that there is no intention to evade duty and the clearances of the goods were effected by showing debit in Education Cess/Secondary & Higher Education Cess account - there is no warrant to visit the appellant with penalties under any provisions of Central Excise Act and the Rules made there under - penalties set aside. Appeal allowed in part. - Appeal No. E/87661/17 - A/86175/2018 - Dated:- 15-3-2018 - Mr. M V Ravindran, Member (Judicial) Ms. Anjali Hirawat, Advocate for appellant S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ient balance in their BED account and it was only a clerical error in non-debiting the amount in basic excise duty account. It is her submission that it has not resulted in any loss to the Government exchequer. On penalty, it is her submission that penalty has been imposed under the provisions of Rule 15(2) of the Cenvat Credit Rules, 2004 read with section 11AC of the Central Excise Act, 1944 by the adjudicating authority. It is her submission that the first appellate authority has confirmed the penalty imposed under section 11AC of the Central Excise Act, 1944 which is not applicable in the case in hand. 5. Learned D.R reiterates the finding of the lower authorities and submits that the appellant had paid Education Cess/Secondary Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty; transfer of an amount from the basic excise duty to education cess is permitted as per Act and Rules made thereunder, the non-debiting in BED account can be attributed to human error which was subsequently rectified, on being pointed out. In my considered view, this act of non-debiting the basic excise duty would not attract stringent imposition of equal penalty under section 11AC or under rule 15(2) of Cenvat Credit Rules, 2004 inasmuch that there is no intention to evade duty and the clearances of the goods were effected by showing debit in Education Cess/Secondary Higher Education Cess account. In view of these finding, I hold that there is no warrant to visit the appellant with penalties under any provisions of Central Excise Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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