2011 (7) TMI 627

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....ory penalty under Section 11AC of Central Excise Act, 1944 has been dropped. 2. The brief facts of the case are that in the course of manufacturing business, the respondents had purchased inputs, namely, brass strip coil from 100% EOU and had taken cenvat credit of duty. On scrutiny it was found that the credit of Rs.88,694/- was inadmissible, therefore, recoverable under Cenvat Credit Rules, 200....

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....lerk had taken the credit on the EOU invoice without noticing the supplier's status as an EOU was different. as it was bonafide mistake on the part of concerned clerk who was not aware the fact that the credit is inadmissible for procuring the goods from 100% EOU. Therefore, he dropped penalty imposed on the respondents. Aggrieved by the said order, the Revenue is in appeal before this Tribunal. ....

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....nts. 5. Heard learned SDR and perused the records.  6. On perusal of the show cause notice, the charge against the respondents is that they have wrongly taken the credit. If the charge is that then there is no malafide intention to avail wrong credit on the part of the respondents. Moreover, the Commissioner (Appeals) in the impugned order had dealt with the issue in detail in para 8 which ....

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....issue of show cause notice. The case would be covered by Section 11A(2B) of the Central Excise Act, 1944 and in such a situation no show cause notice is required to be issued. Consequently, no penalty is imposable." 7. After going through the order of the Commissioner (Appeals), I find that the Commissioner (appeals) has considered the submissions of the respondents that there was no intention to....