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TMI Blog2019 (2) TMI 594X X X X Extracts X X X X X X X X Extracts X X X X ..... t cannot be said that only because audit party had found some credit availed as inadmissible, suppression of fact is made out. It cannot also be established that appellant had any malafide intention to suppress its duty liability from the department - Appeal allowed - decided in favor of appellant. - ST/86688/2018 - A/85255/2019 - Dated:- 7-2-2019 - DR. SUVENDU KUMAR PATI, MEMBER (JUDICIAL) Shri T.C. Nair, Advocate for Appellant Ms. Anuradha Parabh, Assistant Commissioner (AR) for Respondent ORDER Imposition of penalty for availment of entire CENVAT credit accumulated on nil duty payable products and exempted services rendered without maintaining separate records by the appellant is assailed in this appeal. 2. Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of payment of duty submitted under Section 11A(3) of the Central Excise Act, 1994 i.e. on 29.07.2013 and appellant was under the bonafide belief that they were required to reverse under Rule 6 of CENVAT Credit Rules, 2004 on output services. He further submitted demand based purely on audit objection, without any important investigation is not sustainable and imposition of penalty is also not sustainable for non-reversal of amount under Rule 6 of CENVAT Credit Rules, 2004 when the issue in dispute was in relation to interpretation of law. He placed his reliance on the following decisions- (i) Ram Steel Rolling 2006 (204) ELT 87 (T) (ii) Kirloskar Pneumatic Co. Ltd. 2010 (254) ELT 328 (T) (iii) Sangrur Agro Ltd. - 2010 (254 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se records. Categorical noting is found in the show-cause notice at para 8 that in ST-3 returns for the relevant period between 2008-12, under the column where assessee had to state if availed benefit of exemption notification, the appellant had filled up the same by declaring the same as NO . Similarly at entry 5AA, noticee was required to provide detail of amount under Rule 6(3) of CENVAT Credit Rules, 2004 where they have declared it as zero amount payable. It may lead anyone to conclude that these kinds of mis-statement were deliberately done to suppress facts. It is also noted in the said paragraph of show-cause notice vide Order-in-Original No. 10/ST/2008 dated 30.02.2008, the appellant was made aware of the position that they were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f verification is to reasonably ensure that no amount, which under the central excise law is chargeable as duty, escapes taxation and the process of verification is always carried out in the presence of assessee and in the process, the auditor is required to discuss the matter with the assessee and advice him to follow correct procedure in future. It is also referred in the said manual that after such submission of audit report, in cases where the disputed amount have not already been paid by the assessee at the spot, demand notices are issued by the department for their recoveries. EA 2000 audit was therefore held to be participative audit. Likewise CERA audit is conducted by the Comptroller and Auditor General of India in respect of recei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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