TaxTMI 
TaxTMI 
2010 (3) TMI 518
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....pondent. [Order]. - These appeals are filed by the appellants against the penalties under Rule 15 of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. 2. Brief facts of the case are that the appellants availed Cenvat credit on capital goods which were not available in their factory premises at the time of visit and were never brought to the factory premises. O....
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..... Aggrieved by the same, the appellants are before me. 3. Heard both sides. 4. The learned Advocate appearing on behalf of the appellants submits that the appellants have purchased the machineries and as they were not having sufficient space to install the same in their factory, the machineries were kept in their godown. During the time of visit of Departmental Officers, 50% credit of duty was c....
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.... their factory and the appellants have availed the credit in contravention of Rules which amounts to suppression and provisions of Section 11AC are applicable in this case. He further prayed that the impugned order be upheld. 6. I find that it is true that the appellants have availed Cenvat credit on these capital goods as they were not received in their factory but kept in their go-down but late....
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....with an intention to evade payment of duty. In these circumstances, I find that there was no mala fide intention of the appellant to avail wrong Cenvat credit. In the absence of the ingredients of Section 11AC like fraud, collusion or any willful mis-statement or suppression of facts with intention to evade duty, the provisions of Section 11AC are not applicable in this case. 7. In these circumst....