2016 (12) TMI 579

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....ings from several suppliers which are used as inputs and avail CENVAT credit as per Rule 3 of CENVAT Credit Rules (CCR), 2004. The appellant raised debit notes to the supplier for short quantity of input received. As per the provisions of the Central Excise Act, 1944, they are required to reverse proportionate CENVAT credit in respect of short-receipt of inputs, for which they have issued debit notes. By oversight, the appellant did not reverse the credit and on being pointed out by the audit party, appellant reverses the CENVAT credit of Rs. 83,719/- along with interest of Rs. 10,149/- vide challan No.246 dated 2.3.2010. Thereafter a show-cause notice was issued proposing to impose penalty under Section 11AC read with Rule 15(2) of CCR. Le....

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....ollowing two authorities. i. CCE, Pune vs. Vickers System International Ltd.: 2008 (221) E.L.T. 445 (Tri.-Mumbai) ii. ISMT Ltd. vs. CCE, Aurangabad: 2010 (257) E.L.T. 153 (Tri.-Mumbai). 5. On the other hand, the learned AR reiterated the findings in the impugned order and submitted that had it not been pointed out by the Revenue, the mistake would have gone unnoticed and therefore the appellants are liable to pay penalty. 6. After considering the submissions of both the parties and perusal of provisions of Section 11A(2B) and the judgments cited supra wherein in identical facts, this Tribunal in the case of CCE vs. Vikram System International Ltd. (supra) in para 4 has held as under: "4. On perusal of the do....