2017 (10) TMI 954

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....ORDER The fact of the case is that the appellant is engaged in the manufacture of transformers. At times they received the old transformer in their factory and for repairing of the same they used certain inputs on which the cenvat credit was availed. The repaired transformers are cleared without payment of duty however the appellant did not reversed the cenvat credit on the input used in repair....

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....ey were taking credit on the inputs and discharging the excise duty which was objected by the department therefore they have changed the procedure. Thereafter they started clearing repaired transformers without payment of duty therefore there is no mala fide intention due to the confusion that whether the repaired transformer is required to be cleared on payment of duty or otherwise, the appellant....

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....ingly, the penalty under Section 11AC of the Central Excise Act read with Rule 15(2) of the Cenvat Credit Rules, 2004 imposed by the lower authority cannot be interfered, in the light of the Hon'ble Supreme Court judgment in the case of Union of India Vs. Dharmendra Textile Processors - 2007 (215) E.L.T. 321 (S.C.). The penalty under Section 11AC cannot be waived, however it is observed that the a....