Credit taken of "Value" of goods on 58 occasions cannot be treated as bona fide mistake - equivalent penalty rightly imposed
THE appellant was issued two SCNs demanding duty on the ground that they had availed excess credit than the duty shown to have been paid on the documents under which the inputs were received. The adjudicating authority confirmed the demand along with interest and also imposed penalty under section 11AC of the Central Excise Act.
Before the CESTAT, the appellant contends that it was a mistake on the part of their excise clerk who had taken credit of the value of the goods and it is a bona fide mistake. It is further submitted that they have paid the duty subsequently along with interest and hence they cannot be saddled with any equivalent penalty.
The Revenue representative submitted that there are as many as 58 instances where the appellant had taken the CENVAT credit of the value of the goods and also utilized the same. Inasmuch as in the first SCN the credit so availed is Rs.9,17,866/- and in the second SCN the amount involved is Rs.1,60,166/- and hence this act is a wilful one to evade payment of duty.
The Bench observed that there is no merit in the contention of the appellant that it is a bona fide mistake and the repeated action of the appellant in taking excess credit deserves penalty u/s 11AC of the CEA, 1944.
Holding so, the appeals were dismissed.