2012 (1) TMI 109

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.... the issue involved lies in a narrow compass and can be straightway decided, these appeals are taken up for disposal after waiving the requirement of pre-deposit. 2. The facts of the case, in brief, are that these two appeals have been filed by M/s Subhasri Pigment Pvt. Ltd. (1st appellant) and Shri K. Srivastan, Director. The 1st appellant had taken Cenvat Credit without receiving the goods on the basis of invoices issued by M/s Itisha Alu-Chem, thereby facilitating evasion of Central Excise duty. In the proceedings before lower authorities, Cenvat credit wrongly availed of Rs. 28,864/- with interest has been demanded and penalty equal to the wrongly availed Cenvat credit has been imposed on the 1st appellant as also on the Directo....

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.... R.L.T. 471 (Guj.) = 2009 (239) E.L.T. 439 (Guj.) I consider this request is to be upheld and accordingly, penalty imposed on the appellant is reduced to 25% of the Cenvat credit wrongly availed in view of the fact that the appellant had already paid full amount of Cenvat credit denied, interest thereon and penalty equal to wrongly availed credit. As regards the 2nd appellant, it was submitted that the penalty has been imposed under Rule 26 of Central Excise Rules, 2002 read with Rule 15(2) of Cenvat Credit Rules, 2004. For ready reference, Rule 15(2) of Cenvat Credit Rules, 2004 and Rule 26 of Central Excise Rules, 2002 are reproduced below. "Rule 26. Penalty for certain offences. - (1) Any person who acquires possession of....