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TMI Blog2018 (10) TMI 824X X X X Extracts X X X X X X X X Extracts X X X X ..... her units for the same very issue, the Commissioner (Appeals) has waived the penalties - following the same, penalties set aside - impugned order is modified to the extent of waiving penalties and without disturbing the demand or the interest thereof - appeal allowed in part. - E/41553 to 41555/2018 - 42571-42573/2018 - Dated:- 5-10-2018 - Smt. Sulekha Beevi C.S, Judicial Member For the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellants reversed the credit which was so availed by them irregularly on being pointed out by the department much before issuance of the show-cause notice. However, the department issued show-cause notice proposing to recover the wrongly availed credit along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand, interest and impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a transition period and the appellants had distributed the credit on the bonafide belief that they are eligible for such distribution. She, therefore, pleaded to set aside the interest as well as penalties. It is also argued by her that in respect of two other Units by Order-in- Original No.68/17, dated 11.01.2018 and Order-in-Appeal No.215/17, dated 14.03.2018, the Commissioner (Appeals) had waiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y issue, the Commissioner (Appeals) has waived the penalties. Discussion made by Commissioner (Appeals) for waiving penalties is noteworthy and is reproduced as below:- 7.3 In view of Rule 12A[4] of the Cenvat Credit Rules, the credit taken by one Unit under LTU could be transferred to another Unit in LTU and, therefore, the turnover based distribution of ISD could be overcome by this special ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufficient unutilized credit. Considering the peculiar matrix of facts, change in law, cooperative conduct of the appellant and revenue-neutrality of the issue, I hold that the imposition of penalty under Rule 15 (2) of the Cenvat Credit is unjustified. 7. Taking these aspects into consideration, I am of the view that applying the case law in M/s. Strategic Engineering Pvt. Ltd., (supra) the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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