2010 (4) TMI 941

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....rs in their Bhiwadi unit. In November 2005, the appellant transferred the old and used DG set to their another plant situated at Nalagarh, District Solan (H.P.). The show cause notice was issued proposing demand of duty of Rs. 4,58,640/- being an amount originally taken as credit along with interest and proposing penalties under Rule 15(1), 15(2) of Cenvat Credit Rules, 2004 and Rule 25 of Central Excise Rules, 2002 for the alleged contravention of Rule 3(5) of Cenvat Credit Rules. The original authority confirmed the demand and imposed penalty of Rs. 50,000/- under Rule 15(1) of Cenvat Credit Rules, penalty of Rs. 4,58,640/- under Rule 15(2) of Cenvat Credit Rules and penalty of Rs. 50,000/- under Rule 25 of Central Excise Rules, 2002. On ....

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.... under Rule 4(5)(a) of Cenvat Credit Rules, 2002 whereas present case relates to Rule 3(5) of Cenvat Credit Rules. 5. Learned DR submits that inasmuch as the DG set has been cleared as DG set, the entire amount of credit originally taken along with interest is recoverable and penalty is also imposable. 6. I have carefully considered the submissions from both sides. Undisputedly, the DG set has been received in 1997 and credit has been taken in 1997 and there is no dispute about the correctness of the credit taken as capital goods. It is also not in dispute that the appellant has used the DG set for the intended purpose for about eight years. No doubt, the DG set has been cleared as DG set to their other unit. According to the Departme....