9911796707
TMI Blog2020 (4) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... availed the credit under the head of inputs whereas they could have availed it only under the head of capital goods . In fact, she allowed the entire Cenvat credit for this reason and has only demanded interest for the Cenvat credit availed well in advance. No evidence of fraud, collusion, wilful misstatement, suppression of facts which are essential conditions for imposition of penalty under Rule 15(2) of CCR, 2004 are evident either from the SCN or from the impugned order - the penalty imposed upon assessee under Rule 15(2) of CCR, 2004 is set aside. Revenue s appeal is allowed by remanding the matter to the original authority for requantification of the interest involved after giving both sides adequate opportunity of being heard a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not in the nature of inputs. Accordingly, as per Rule 4(2)(a) of CCR, 2004, as applicable during the relevant year, the assessee was entitled to take Cenvat credit of only 50% of the total Central Excise duty paid on the moulds during the financial year. They could have taken the remaining credit of 50% during the following year. As the assessee has contravened the provisions of Rule 4(2)(a) of CCR, 2004, a show cause notice was issued proposing to recover the Cenvat credit so taken on the pig iron moulds along with interest under Rule 14 of CCR, 2004 read with Section 11A and 11AB of the Central Excise Act, 1944. It was also proposed to impose penalties upon them under Rule 15(1) and (2) of CCR, 2004. 4. After following due process, l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to recomputed the correct amount of interest and we do so. 6. The assessee s appeal is seeking setting aside of penalty imposed by the learned Commissioner in the impugned order. On perusal of Rule 15(2) of CCR, 2004, it would show that it is a clause meant for imposition of penalty in cases where the Cenvat credit in respect of inputs or capital goods or input services has been taken or utilized wrongly by reason of fraud, collusion, any wilful misstatement or suppression of facts or contravention of any of the provisions of Excise Act or the rules made thereunder with intent to evade payment of duty. In this case, from the impugned order it appears that the learned Commissioner has, after going through the show cause notice, the reply ..... X X X X Extracts X X X X X X X X Extracts X X X X
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