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TMI Blog2018 (9) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... Held that:- The same is imposable but the maximum amount during the relevant period is only ₹ 2,000/-. Therefore, the penalty needs to be restricted to this extent. Interest under Rule 14 of CENVAT Credit Rules, 2004 read with Sec.11AB - Held that:- The CENVAT credit is wrongly taken or utilized, an interest thereon is recoverable under Rule 14 of the CENVAT Credit Rules, 2004 - Interest demand upheld. Appeal allowed in part. - Appeal No. E/103/2010 - A/31006/2018 - Dated:- 8-8-2018 - Mr. M.V. Ravindran, Member (Judicial) And Mr. P. Venkata Subba Rao, Member (Technical) Shri K. Nagaraja Rao, Advocate for the Appellant. Shri Pawan Kumar, Superintendent/AR for the Respondent. ORDER [Order per: P.V. Subba R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s issued to them demanding an interest of ₹ 1,27,426/- on the mis-utilized CENVAT credit of ₹ 1,41,78,112/- during the period under Rule 14 of CENVAT Credit Rules read with Sec.11AB of the Central Excise Act. It was also proposed to impose penalty on them under Rule 25 of Central Excise Rules for contravention of Rule 8 of Central Excise Rules, 2002. It is further proposed to impose on them, a penalty as per Rule 15 of CENVAT Credit Rules, 2004 read with Sec.11AC of the Act for contravention of Rule 3(4) of the CENVAT Credit Rules, 2004. After following due process of law, the lower authority confirmed the demands as proposed and imposed a penalty of ₹ 10,000/- on the assessee under Rule 15 of CENVAT Credit Rules, 2004 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for penalty. (e) Rule 25 of Central Excise Rules, 2002 is a penal provision but it must be read with Sec.11AC. Sec.11AC mandates penalty equal to duty evaded or short paid or not paid. Since there is no demand of duty in the notice itself, no penalty under Sec.11AC read with Rule 25 can be imposed. Rule 15 of the CENVAT Credit Rules, 2004 permits imposition of maximum penalty of ₹ 2,000/- only during the relevant period and hence, imposition of penalty of ₹ 10,000/- under this rule is not correct. (f) There is no suppression of facts as all records were available with the Central Excise department and they were fully aware of the details of their activities. (g) There was no financial accommodation to the appellants si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04 read with Sec.11AB is concerned, we find when the CENVAT credit is wrongly taken or utilized, an interest thereon is recoverable under Rule 14 of the CENVAT Credit Rules, 2004 and therefore, we find no reason to interfere with the interest imposed on them. In view of the above, we pass the following order. (i) The interest imposed under the Order-in-Original is upheld. (ii) The penalty under Rule 15 of CENVAT Credit Rules is reduced to ₹ 2,000/- (iii) The penalty under Rule 25 of Central Excise Rules, 2002 read with Sec.11AC is set aside. 4. The appeal is disposed of as indicated herein above. (Operative part of this order was pronounced in the open court on conclusion of hearing) - - TaxTMI - TMITax - Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X
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