2020 (3) TMI 1339

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....n & Steel products falling under Chapter 72 and 73 of Central Excise Tariff Act, 1985. Alleging that they have fraudulently passed CENVAT Credit of Rs. 4,54,78,535/- during the period 03.01.2004 to 02.02.2008, a show-cause notice was issued to them on 16.7.2009 proposing penalty under Rule 25 of Central Excise Rules, 2002, read with Rule 13 of CENVAT Credit Rules, 2002 and Rule 15 of CENVAT Credit Rules, 2004; also notice was issued to other second stage dealer proposing penalty under the same provisions. On adjudication, the learned Commissioner imposed penalty of Rs. 8.00 lakhs under Rule 25 of Central Excise Rules, 2002 read with Rule 13 of CENVAT Credit Rules, 2002 and Rule 15 of CENVAT Credit Rules, 2004 and penalties on other second s....

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.... the impugned order is liable to be modified and the penalty be increased equivalent to the credit passed. 4. The proprietor of the respondent has fairly submitted that no appeal was filed by them against the order of the adjudicating authority. However, he has submitted that the materials mentioned against each of the invoices had been delivered to the respondent manufacturers, who availed CENVAT Credit on the same. It was his contention that the Department had not visited their Godown and only verified the office premises and wrongly came to the conclusion that in absence of storage facility, passing of the CENVAT Credit of duty paid goods as shown in the first stage dealer's invoice when sold to the second stage dealers or to the manufa....