2006 (9) TMI 409

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....he Respondent.  [Order]. -  Heard the learned SDR. The respondents are called absent. 2. In the instant case, the respondents have availed Cenvat credit on capital goods and at the same time also claimed depreciation under the provisions of Section 32 of Income-tax Act. On being pointed out, on the scrutiny of the records, the respondents have reversed the amount of Rs. 3,5....

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....ssee have preferred an appeal before the Commissioner (Appeals), Nashik for setting aside the penalty amount on the ground of limitation in belated issue of show cause notice and their bona fide act in prompt reversal of Cenvat credit availed. It appears that the department has filed a separate appeal before the Commissioner (Appeals) for less imposition of penalty by the adjudication authority. I....

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....aken into consideration the Board's Circular Nos. 801/34/2004-CX., dated 19-11-2004 and opined that imposition of penalty by the adjudicating authority is on high side and needs to be reduced. Considering the other mitigating circumstances, the Commissioner (Appeals) reduced to Rs. 9,000/- as penalty. It is seen form the impugned order that there is no specific finding on the bar of limitation. He....

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....provides that "in a case, where the Cenvat credit has been taken or utilized wrongly on account of fraud, wilful mis-statement, collusion or suppression of facts, or contravention of any provisions of the Act or the Rules made thereunder with intention to evade payment of duty, then, the manufacturer shall be liable to payment penalty in terms of the provisions of Section 11AC of the Act." The lea....