ORDER
Shri Archana Wadhwa
1. Shri P.R. Biswas, ld. Consultant appearing for the appellants fairly agrees that an amount of Rs. 35,954/- claimed as modvat credit of additional duty of Customs paid by them on the imported inputs was not admissible to them under the provisions of Rule 57A of Central Excise Rules, 1944. As such, the same has been rightly disallowed by the authorities below. However, he submits that there was no justification for imposition of personal penalty of Rs. 10,000/- inasmuch as the appellants availed the credit on additional duty of Customs under bonafide belief that the same was available to them as credit under the provisions of Rule 57A. He submits that the entire exercise was done with the knowledge of the Revenue and under intimation to the proper officer inasmuch as the due declaration was filed and the credit taken was reflected in their records. As such, it was a case of mis-understanding on their part and there was no malafide to avail the wrongful credit.
2. After hearing Shri A.K. Chattopadhyay, ld. JDR, I find force in the submissions made by the ld. Consultant. It is not a case where the credit was availed by the appellants in a clandestine manner. On the contrary, the credit of additional duty of Customs was availed by them in full knowledge of the Department. As such it can be safely concluded that the appellants were under bonafide belief that Rule 57A allows them to take credit. The Revenue objected to taking of the credit after all the papers were submitted by the appellants. As such I do not find any justification for imposition of penalty upon the appellants. The same is accordingly set aside and the appeal is allowed to that extent.
Dictated and pronounced in the open Court.