2018 (5) TMI 204

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..../- from April, 2010 to December, 2010 and the same has been used and the appellant had debited the said amount at the time of filing ER1 returns for the month of December, 2010 voluntarily but did not pay any interest thereon. Based on the above facts, a show cause notice dated 7.3.2012 was issued for recovery of interest and proposing penalty under Rule 15 (1) of Cenvat Credit Rules, 2004 read with Section 11AC of the Act. The matter was adjudicated and the demand of interest was confirmed and the penalty of Rs. 50,000/- was imposed. Aggrieved from the adjudication order, the appellant have filed this appeal. 2. Ld. Advocate for the appellant submits that the adjudicating authority in his order has given clear finding that the elements of....

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.... 5. I find from the facts of the case on record that department came to know about discrepancy in Cenvat credit only after being informed about the same by the appellant on 17.11.2011. In the show cause notice, the extended period has expressly not been invoked though there is mention that the assessee has utilized the excess Cenvat credit intentionally. However, I find that the Ld.Commissioner has given the following finding on the applicability of Section 11AC:- " From perusal of the above, it can be made out that the noticee had Cenvat credit of more than Rs.Five Crore during the impugned order, whereas the Cenvat credit allegedly availed wrongly is only about 1.5 crore, which clearly establishes that the noticee never utilized the so c....