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TMI Blog2018 (12) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... the cenvat credit as penalty under Section 11 AC of the Central Excise Act, 1944 - Held that:- Admittedly, the said payments have made by the appellant before passing the adjudication order, therefore, in terms of provisions of Section 11 AC of the Act, the appellant is entitled for the benefit of 25% cenvat credit as penalty and which has been done by the appellant. Therefore, the appellant is entitled for the benefit of 75% cenvat credit as penalty. Accordingly, the penalty is reduced to 25% of cenvat credit in question. CENVAT Credit - denial on the premise that the same cannot be input to manufacture their final product - Held that:- The revenue has not able to produce any evidence on record that these goods are not received by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the said order, the appellant is before me. 3. Ld. Counsel appearing on behalf of the appellant submits that cenvat credit of ₹ 2,52,133/- sought to be denied on the ground that the appellant has not received the returned goods from the buyer of the goods. It is his contention that initially the appellant sold the goods to their Noida based buyer, who directed the appellant to deliver the goods to the job worker located in Ludhiana. The job worker found the goods are not up to the mark and returned back the goods under Challan to Noida based buyer, (principal manufacturer), who in turn, issued invoices of returned goods to the appellant. Therefore, the appellant has received back the goods manufactured by them and is entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... na based job work in the account of their principal manufacturer i.e. Noida based buyer, but, directly to the appellant. It is not disputed the fact that the goods in question has not been received by the appellant, therefore, on the receipt of the said goods which were sold by the appellant under invoices issued by the buyer, the appellant is entitled to avail cenvat credit on such returned goods. Therefore, I allow the cenvat credit to the appellant of ₹ 2,52,133/-. (b) Cenvat Credit sought to be denied on the allegation of diversion of the goods to the tune of ₹ 16,552/- which the appellant has admitted and reversed alongwith interest. The appellant has also paid 25% of the cenvat credit as penalty under Section 11 AC o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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