2016 (5) TMI 658

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....rity under Rule 57I (4) read with Rule 173Q (1) (bb) of the Central Excise Rules, 1944. 2. Shri N.K. Choudhary, Advocate appearing on behalf of the appellant argued that the credit of Rs. 7,27,084/- was taken by the appellant during the period June, 1993 to August, 1994 immediately on receiving of documents when the inputs were directly sent to the job worker from the purchaser. That as per CBEC Circular No. 265/99/96-CX dated 12/11/1996, Cenvat Credit on inputs directly sent to job worker was required to be taken only on receipt of respective inter-mediate products manufactured by the job worker as per the provisions contained in Rule 57J and Notification No. 351/86-CE. That the goods manufactured by the job worker were received by the ap....

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....o first appellate authority has held that penalty under Rule 173Q (1) (bb) is imposable. 4. As a counter to the above arguments made by A.R., Ld. Advocate appearing on behalf of appellant argued that as per the provisions of Rule 173Q (1) (bb) penalties are subject to the provisions contained in Section 11AC of the Central Excise Act, 1944 and Rule 57I (4) of the Central Excise Rules, 1944 and no penalty under Rule 173Q (1) (bb) can be imposed as there is no supression, mis-statement with intention to deliberately take wrong credit .It was also argued by the Ld. Advocate that even if it is held that penalty under rule 173Q (1) (bb) is imposable then also penalty of Rs. 2.00 Lakhs imposed for temporarily taking Cenvat Credit of Rs. 7,27,084....

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....al goods for being used in the manufacture of final products or capital goods for use in the factory of the manufacturer of final product, as the case may be 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 invoice or any other document approved under these rules evidencing the payment of excise duty or the countervailing duty, as the case may be, accompanying thereof, or takes credit of duty or money which he knows or which he has reason to believe, is not permissible under these rules, or does not utilize the inputs or capital goods in the manner provided for in these rules, or utilizes credit of duty or money in respect of inputs or capital go....

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....cate given by a person with whose handwriting or signature he is familiar or (c) on the strength of a certificate issued to the manufacturer or the supplier, as the case may be, by the Superintendent of Central Excise within whose jurisdiction such manufacturer has his factory or the supplier has his place of business :Provided that where the identity and address of the manufacturer or the supplier is satisfied on the strength of a certificate, the person availing of credit of duty shall retain such certificate for production before the proper officer on demand.  (2)---------------------" 7. In view of the From the above provisions taking inappropriate credit without taking a reasonable step has to be considered to be an offence fo....