2011 (8) TMI 895

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....ner (Adjudication), Central Excise, Headquarters, Allahabad, confirmed Cenvat Credit/duty, amounting to Rs.6,97,510/-for recovery, as demanded by the show cause notice under Section 11-A of the Central Excise Act 1944 read with Rule 14 of the Cenvat Credit Rules 2004. He also confirmed the additional Cenvat Credit/duty, amounting to Rs.3,140/- on the miscalculation by respondent Company, as a differential amount, and recovery of interest and imposed penalty of Rs.5,00,000/- under Rule 15 of the Cenvat Credit Rules 2004.   The Commissioner (Appeals) Customs and Central Excise, Allahabad, relying upon the decision in Peer Atar Steels (P) Ltd vs. CCE [2004 (93) ECC 633], decided by Allahabad High Court, in which it was held that imposi....

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....NVAT credit in respect of input or capital goods, wrongly or in contravention of any of the provisions of the rules.   Sub rule (2) provides for levy of penalties under Section 11 AC of the Excise Act, in case of fraud, wilful mis-statement, collusion or suppression of facts or contravention of any of the provisions of the Excise Act, or the rules made thereunder with intention to evade payment of duty.   The penalty under sub-rule (2) is in addition to penalty under sub rule (1) and thereafter there is a provision for penalty not exceeding Rs. 2,000/- under sub Rule (3). The sub rule (4) also provides for penalty under Section 78 of the Finance Act, and the sub rule (5) provides that any order under subrule (1) to (4) shall....

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....wrongly by reason of fraud, collusion, willful mis-statement, suppression of facts, or contravention of any of the provisions of the Finance Act or of the rules made thereunder with intention to evade payment of service tax, then, the provider of output service shall also be liable to pay penalty in terms of the provisions of section 78 of the Finance Act.   (5) Any order under sub-rule (1), sub-rule (2), sub-rule (3) or sub-rule (4) shall be issued by the Central Excise Officer following the principles of natural justice."   The Tribunal has not committed any error in finding that no penalty could be imposed in the case, as there is conflicting opinion of the benches of the Tribunal, on account of which, it could not be sai....