2018 (6) TMI 1069

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.... Per: Ramesh Nair Revenue filed the present appeal seeking imposition of penalty under Section 11AC of the Central Excise Act which was set aside by the Commissioner (Appeals) in the impugned order. 2. The facts of the case is that the respondent was making the provisions of raw materials from time to time in respect of inventory written off in the Books of Account. They were reversing th....

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....as dropped. Therefore, the present appeal filed by the Revenue seeking restoration of penalty imposed by the original authority under Section 11AC. 3. Shri H.M. Dixit, learned Assistant Commissioner (AR) appearing on behalf of the Revenue reiterating the grounds of appeal submits that the appellant had reversed the credit only after pointing out by the EA-2000 Audit. Had the Audit not pointed o....

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....s that the provisions of reversal is inbuilt under rule 3(5B) of CENVAT Credit Rules, 2004, which does not provide for imposition of any penalty. In Cenvat case, the penalty can be imposed only if the case falls under Rule 14 of the CENVAT Credit Rules, 2004. Rule 14 is applicable only when the CENVAT Credit is wrongly availed or erroneously refunded. In the present case, there is no dispute about....

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....e facts of the case, I find that the appellant has been admittedly making the provisions in their Books of Account from time to time in respect of inventory written off and they also reversed the credit on written off quantity time to time. Only in some cases they have not reversed the credit and this cannot be taken as with intent to evade payment of duty. Once the practice of the appellant is th....