2023 (12) TMI 478

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.... by the Revenue against orders-in-original whereby the Revenue has contested non imposition of penalty under Rule 15 (3) of Cenvat Credit Rules, 2004 against the confirmation of duty demand of cenvat credit availed on steel, cement, air conditioner, CHA service, rent-a - cab service etc. 2. Shri Ajay Jain, Learned Special Counsel appearing on behalf of the Revenue submits that these appeals are filed against a common impugned orders wherein the assessee also had filed appeal challenging the demand of cenvat credit. Those appeals have been allowed by this Tribunal vide Final Order No. A/11843-11848/2015 dated 15.12.2015 however, against the said order the Revenue has filed appeal before the Hon'ble Gujarat High Court. The Hon'ble High Cou....

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....ces in the present case were issued periodical after the first show cause notice which was involved in the case reported at Mundra Ports & Special Economic Zone Ltd. vs. CCE & Customs - 2015 (39) STR 726 (GUJ.). Accordingly in case of subsequent show cause notices no ingredients for imposition of penalty under Rule 15 (3) are satisfied therefore independently also on merit the penalty under Rule 15 (3) is not sustainable. 3.1 As regard the submission of the learned Special Counsel regarding keeping the matter in abeyance he submits that against the very common order when the demand of cenvat credit has been set aside there is no reason to keep these appeals pending. He further submits that in departments appeal pending before the Hon'ble....

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....evant period needs to be read as under : - "3) In a case, where the CENVAT credit in respect of input or capital goods or input services has been taken or utilised wrongly by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of these rules or of the Finance Act or of the rules made thereunder with intent to evade payment of service tax, then, the provider of output service shall also be liable to pay penalty in terms of the provisions of sub-section (1) of section 78 of the Finance Act." 4.2 From reading of the above Rule 15(3) it is clear that penalty under the aforesaid rule can be imposed only when the credit has been taken or utilized wrongly by reason o....