2014 (12) TMI 273

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....EMENT Per : B.S.V.MURTHY The appellant was issued a show-cause notice dt. 05/12/2005 for demand and appropriation of the amounts mentioned herein for (i) wrong availment and utilization of CENVAT credit of Rs. 9,84,709/- availed on inputs consigned to other unit; (ii) availment of full credit of duty on the inputs received from 100% EOU instead of eligible credit as per the prescribed formula, ....

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....e, the Commissioner(Appeals) modified the Order-in-Original and imposed penalty equivalent to the amount of CENVAT credit demanded under Section 11AC of CEA. 2. The learned counsel on behalf of the appellants submits that the appellants had made mistakes and as soon as the omissions were pointed out, immediately the amounts were paid with interest. It was also admitted by the appellants that it w....

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.... I find that in this case imposition of penalty on the ground of suppression of fact may not be sustained. The learned AR would rely upon the decision in the case of CCE, Delhi-III Vs. Machino Montell (I) Ltd.[2006(202) ELT 398 (P&H)]. I fully agree that once suppression or misdeclaration is established, penalty is mandatory. In this case, the show-cause notice alleged suppression and it was state....