2010 (2) TMI 450

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....ppellant. M. Vivekanandan for the Respondent. ORDER 1. M/s. Sudhakar Plastic Ltd., Hyderabad has filed this appeal seeking to vacate the impugned order vide which the Commissioner (Appeals) affirmed an order of the original authority demanding the wrongly availed Cenvat credit of Rs. 1,09,366 along with applicable interest and imposed equal amount of penalty under Cenvat Credit Rules, 200....

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.... Equal amount of penalty was imposed under rule 15(4) of Cenvat Credit Rules. A total penalty of Rs. 10,000 was imposed under sections 76 and 77 of the Finance Act, 1994. The appellants have already paid the wrongly availed Cenvat credit along with due interest on 24-3-2008. 2. In the appeal filed before the Tribunal as well as during hearing, the appellants have argued that neither the show-ca....

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....here any such finding in the order of the original authority or in the impugned order. In the circumstances, equal amount of penalty imposed on the appellants was liable to be set aside. As the proceedings were to recover wrongly taken Cenvat credit, provisions of sections 76 and 77 of the Finance Act were not attracted. The impugned order deserved to be set aside. 3. Ld. SDR for the revenue su....

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....voking provisions of rule 15(4) of Cenvat Credit Rules. I find that as rightly argued by the appellant, penalty can be validly imposed under these provisions in the following circumstances as per sub-rule (4) of rule 15, which is as under: "Rule 15(4): In a case, where the CENVAT credit in respect of input services has been taken or utilised wrongly by reason of fraud, collusion, wilful mis-sta....