MODERN STEELS LTD. Vs. C.C.E.

JUDGEMENT

(1.) This is an appeal against the order of the Commissioner (Appeals) No. 499/CE/CHD/2007 dated 17.10.07.

(2.) Heard both sides.

(3.) Learned Advocate for the appellants submits that it was a mistake in taking the credit of education cess relating to basic customs duty. The dispute relates to the period 9.7.04 to 31.3.05, the initial stage of introduction of Education Cess. They were under the impression that entire education cess was available as credit and they did not know that the education cess on the basic customs duty was not available as credit. On being pointed out by the audit party and as conveyed to them by the Range Officer, they promptly paid the wrongly availed credit along with interest. The show cause notice does not allege any intention on their part to evade duty. The mistake is a bona fide one and does not warrant penalty under Rule 15(1) of Cenvat Credit Rules. He relies on the decision of the Tribunal in the case of Bagpat Cooperative Sugar Mills Ltd. v. C.C.E., Meerut II reported in, 2007 (212) ELT 77 (Tri -Del.) wherein it has been held that in cases where the contravention did not involve any deliberate attempt to evade duty, under Rule 13(1) of Cenvat Credit Rules, 2002 (as it was existing), the penalty imposable was only Rs. 10,000/ -. He submits that under Rule 15(1) of Cenvat Credit Rules, for similar circumstances, the minimum penalty prescribed is only Rs. 2000/ -.