2007 (6) TMI 582

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....This appeal is directed against Order-in-Appeal No. PII/26/2006 dated 17-2-2006 which confirmed the demand of Rs. 15,000/- but set aside the penalties imposed upon the respondent. 2. The relevant facts that arise for consideration are the respondent availed Cenvat credit on the strength of original invoices and also availed Cenvat credit of the amount paid as Sugar Cess under Sugar Cess Act,....

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.... the respondent on the sugar cess is confirmed hence penalty under Section 11AC is mandatory and equivalent amount of penalty is imposable on the respondent. It is his submission that it is settled law that penalty under Section 11AC is mandatory and penalty has to be imposed once it is upheld that amount is to be payable by the respondents. 4. Ld. Counsel appearing on behalf of the responde....