2016 (8) TMI 724

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.... disallowed. 2. SCN dated 24-10-2013 was issued for the period April 11 to March 12, as during course of audit it came to notice of the revenue that the appellant have utilised Cenvat credit of Rs. 65,475/- paid vide GAR-7 Challan Number 00052, dated 9-6-2011 and credits it vide RG23 A part-II Entry Number 14/223, dated 29-7-2011 being transporting charges paid on cleaning and disposal of hazardous waste services provided by Ramki Enviro Engineers Ltd., Kanpur. It appeared to revenue that the Cenvat credit is inadmissible as there is no prescribed document to avail credit as per the provisions of Rule 9(1)(e) of Cenvat Credit Rules, 2004. It further appeared that credit is not available as the service does not have any nexus with manufac....

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....f removal, the disallowance was upheld. As regards penalty, observed that there is no deliberate intention on the part of appellant to evade the payment of duty, and availed the inadmissible credit. Credit was availed on the basis of available documents. On scrutiny of the documents by Audit and in the response to objection by the audit team, finding of discrepancies or irregularities, appellant had reversed the credit. Mere discovery of excess availment of Cenvat credit, cannot be a condition for invoking the clause of 'fraud and suppression' in the absence of any evidence to support the allegation. Accordingly penalty under Rule 15 of CCR was reduced to Rs. 10,000/- (Rupees Ten Thousand only). 3. Being aggrieved the appellant i....