Appellate Tribunal Upholds Decision on Cenvat Credits, Reduces Penalties

The Appellate Tribunal CESTAT, Mumbai upheld the Commissioner's decision to disallow Cenvat credits totaling Rs. 1,06,258/- and Rs. 9149/-. Penalties were reduced to Rs. 5000/- and Rs. 500/- respectively. The Tribunal emphasized the requirement to pay duty from PLA before availing Cenvat credit and dismissed the appeals.

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The Appellate Tribunal CESTAT, Mumbai upheld the Commissioner's decision that Cenvat credit was wrongly used and disallowed credits of Rs. 1,06,258/- and Rs. 9149/-. Penalties were reduced to Rs. 5000/- and Rs. 500/-. The Tribunal ruled that duty must be paid from PLA before availing Cenvat credit, and dismissed the appeals.

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