2017 (7) TMI 797

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....the same. The said credit so availed by the appellants was utilised by them for payment of duty of excise in respect of the goods manufactured by them, even though, the said imported items were not listed but hired by them to other independent people. They availed a total credit of around Rs. 32 lakhs during the period June, 2009 to June, 2011. 2. As a result of preventive checks, it was found that the said credit, so availed by the appellant, was not available inasmuch as the imported capital goods were not being used by them in the manufacture of the final products and were being hired out. As a result of the objection taken by the officers, the appellants debited the credit from their Cenvat Credit account and as a part of the same al....

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....d having suffered interest liability, the penalty imposition upon them was not warranted. Accordingly, he prays for setting aside the penalty. 6. Countering the arguments, learned departmental representative Shri K.P. Muralidharan appearing for the Revenue submits that the appellants have been a manufacturer for the last number of years and are expected to be aware of the Excise laws. When the imported goods were not being used by the assessee and were hired out to other persons, the same has no connection with the manufacturing activities of the appellants. As such, there can be no confusion on the part of the assessee to avail the credit, Further, the fact of availment of credit was detected by the officers themselves and if the same w....