TaxTMI 
TaxTMI 
2007 (2) TMI 33
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....to be charged. 2. The appellant had availed Cenvat credit of Rs. 18.174/- on "shelling charges". The assessee had received shelled, machined and grooved sugar mill machinery parts from the job worker and had taken credit of duty paid by them on shelling, machining and grooving charges under Invoice No. 15 dated 21-5-2003. 3. The Revenue alleged that the invoice did not contain any details of new spares used at the time of shelling, machining and grooving of the sugar mill machinery parts, but merely showed only "shelling, machining and grooving charges" and that no duty was borne by the job-worker on any new items fitted or used in such parts. 4. The issue involved is squarely covered by the ratio of the decision of this Tribunal in Bhar....
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....r (Appeals). 5 1 In this context, we may refer to the provisions of Rule 13 of the Cenvat Credit Rules, 2002, which reads as under: "Rule 13. Confiscation of penalty. - (1) If any person, takes Cenvat credit in respect of inputs or capital goods, wrongly or without taking reasonable steps to ensure that appropriate duty on the said inputs or capital goods has been paid as indicated in the document accompanying the inputs or capital goods specified in Rule 7, or contravenes any of the provisions of these Rules in respect of any inputs or capital goods, then, all such goods shall be liable to confiscation and such person, shall be liable to a penalty not exceeding the duty on the excisable goods in respect of which any contravention has bee....
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....ade with intention to evade payment of duty and provides for penalty in terms of the provisions of Section 11AC of the Act. Under Section 11AC of the Central Excise Act, 1944, penalty "equal to the duty" determined is required to be imposed. The cases falling in sub-rule (2) of Rule 13 are: (i) Where Cenvat credit has been taken or utilized wrongly on account of fraud, wiliul mis-statement, collusion or suppression of facts; (ii) When there is any contravention of the provisions of the Act or the Rules made thereunder, with intention to evade payment of duty. Thus, in cases where the contravention of the provision of the Act and Rules is not innocuous and there is intention to evade payment of duty, then sub- rule (2) of Rule 13 will be ....