IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. C.E.A. No.172 of 2010 (O&M) Date of decision: 21.12.2010 Commissioner of Central Excise. -----Appellant. Vs. M/s Alpha Drugs India Ltd. -----Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE RAJESH BINDAL Present:- Mr. H.P.S. Ghuman, Sr.Standing Counsel for the appellant/revenue. --- ADARSH KUMAR GOEL, J. 1. This appeal has been preferred by the revenue under Section 35G of the Cental Excise Act, 1944 (for short, “the Act”) against the order of the Customs, Central Excise & Service Tax Appellate Tribunal, New Delhi dated 25.3.2010 (Annexure A-3) proposing to raise following substantial question of law:- “Whether the Tribunal was right in holding that no penalty was imposable observing that the issue involved is of interpretation of the Cenvat Credit Rules, ignoring clear violation of the legal provisions by the Respondent?” C.E.A. No.172 of 2010 2. The assessee claimed Cenvat Credit which was not allowed by the adjudicating authority to the extent of `46,660/-. Accordingly, demand for the said amount alongwith interest and penalty of the like amount was raised which was upheld on appeal. On further appeal, the Tribunal sustained the demand of duty and interest but set aside the levy of penalty, holding that the issue involved interpretation of the rules and there was no attempt at evasion which may call for levy of penalty. 3. We have heard learned counsel for the appellant. 4. We find that decision has been taken by the Tribunal on facts and circumstances by holding that there was no willful evasion on the part of the assessee. The amount of penalty involved is only `46,660/-. 5. No substantial question of law arises. The appeal is dismissed. (ADARSH KUMAR GOEL) JUDGE December 21, 2010 (RAJESH BINDAL) ashwani JUDGE 2