2012 (2) TMI 396

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....e in respect of Modvat Credit of duty paid on angles and bars, which were used by the respondents in the construction activities. The above non-availability of Modvat Credit was brought to the notice of the respondents by the Department vide their letter dtd. 24.08.01. The respondents immediately acted upon the same and reversed the credit vide two different entries dtd. 3rd and 11th September, 2001. They also paid the interest on the above amount.   3. Commissioner(Appeals) vide his impugned order held as under :-   14. I have gone through the facts of the case and heard Shri S.K.Dhanda, Consultants and Shri R.K.Arora, Authorised representative on behalf of the appellants. The appellants do not dispute that Cenvat credit is not....

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....ailed of inadmissible credit. This appears a fit case for showing a leniency in respect of imposition of penalty.   4. As is seen from above, the appellate authority has attributed suppression to the appellant for the purpose of confirmation of demand of duty. However, while setting aside the penalty, he has observed that as the respondents have acted promptly in reversing the credit and have not gained anything by making wrong entry in their Cenvat Credit A/c, penalty is not imposable upon them.   5. The respondents have filed the Cross Objections against the said order which are required to be treated as appeal. They have challenged the findings of the Commissioner(Appeals) as regards suppression. However, ld. Advocate appeari....