2018 (1) TMI 623

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....mar Singh, Supdt (AR) - for Respondent ORDER Per: Archana Wadhwa The appellants are engaged in manufacture of Transformers for which purpose they were availing Cenvat credit of duty paid on various goods used in the said manufacture. Apart from the manufacturing activity, the appellant was also undertaking the repair and maintenance of old Transformers and were using certain inputs and al....

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....r was passed by the Original Adjudicating Authority imposing penalty of Rs. 2,47,196/- in terms of Rule 15 of Cenvat Credit Rules read with Section 11AC of the Act. The appellant contested the above imposition of penalty before Commissioner (Appeals), but did not succeed. Hence the present appeal. 4. The appellant's contention is that such credit was being availed by them under the bonafide bel....

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....under intimation to the officers. Inasmuch as the appellants were manufacturing transformers and were availing Cenvat credit of duty paid on inputs, there could be a bonafide belief on their part that such credit is available on their activities. In the absence of any evidence to show that such availment was being carried out by the appellant with a malafide intention, penal provisions should not ....