2018 (11) TMI 10

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....he CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. 3. The learned Advocate appearing for the appellant, at the outset, submits that the appellant is not contesting disallowance of CENVAT credit, which was subsequently reversed by the appellant. However, he contended that imposition of penalty is not sustainable inasmuch as the entire CENVAT credit, in question, was reversed prior to issuance of show cause notice and that there was no element of fraud, collusion, suppression of facts, etc., in availing such irregular credit. Thus, he pleaded for the benefit of Section 11A(2) of the Act for non issuance of show cause notice, only for imposition of penalty. It was further contended that in absence of fulfil....

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....ent or utilisation of CENVAT credit, attributable to the reason of fraud, collusion or willful misstatement or suppression of facts, or contravention of any of the provisions of the Excise Act, or of the rules made thereunder, with intent to evade payment of duty, then the manufacturer shall also be liable to pay penalty in terms of the provisions of Section 11AC of the Act. On a plain reading of both the provisions of Rule 15 of the Rules and Section 11AC of the Act, it transpires that onus entirely rest on Revenue to prove that the ingredients mentioned therein are fulfilled for invocation of the penal provisions. On perusal of the case records, I do not find that the department had adduced any plausible evidence to sustain the charges le....