LAWS(CE)-2005-11-202

CCEX Vs. DELTA ELASTOMETAL COMPOUND PVT.

Decided On November 14, 2005
Ccex Appellant
V/S
Delta Elastometal Compound Pvt. Respondents

JUDGEMENT

(1.) THIS is an appeal filed by the Revenue against the Order of the Commissioner (Appeals) who had earlier rejected the plea of the Revenue to enhance the penalty. M/s. Delta Elastomental Co. Pvt. Ltd. engaged in the manufacture of rubber compound had availed CENVAT Credit wrongly on Capital goods for which penalty (Rs. 30,000/ - and Rs. 20,000/ -) was imposed by the lower authorities on the respondents. The penalty was imposed in one case under Section 11AC read with Rule 12 and in another case under Rule 26.

(2.) THE reason given by the Commissioner (Appeals) for non -enhancement of penalty is as follows: However, from the judgments of Hon'ble CEGAT in the cases relied upon by the respondent M/s. Delta Elastomel, Plant II, and so also in the case laws mentioned below it is noticed that Hon'ble CEGAT and Hon'ble High Court have held that penalty under Section 11AC equal to duty amount is maximum but not mandatory.

(3.) AGGRIEVED by the said Order of the Commissioner (Appeals) Revenue has come in appeal.