Section 16(6) in The Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010
(6)[Where the CENVAT credit has been taken and utilised wrongly, the same] [Substituted for the words "Where the CENVAT credit has been taken or utilised wrongly, the same" by Notification No. G.S.R. 174 (E) dated 17.3.2012 (w.e.f. 27.2.2010)] along with interest shall be recovered from the manufacturer and the provisions of sections 11A [and 11AA] [Substituted for the words "and 11 AB" by Notification No. G.S.R. 174 (E) dated 17.3.2012 (w.e.f. 27.2.2010)] of the Act, shall apply mutatis mutandis for effecting such recoveries.Provided further that all such bulk packs of [chewing tobacco and Jarda scented tobacco] [Substituted for the words "chewing tobacco" by Notification No. G.S.R. 174 (E) dated 17.3.2012 (w.e.f. 27.2.2010)] on which credit has been wrongly taken or utilised wrongly shall be liable to confiscation and the manufacturer shall be liable to a penalty not exceeding the duty on such bulk packs of [chewing tobacco and Jarda scented tobacco] [Substituted for the words "chewing tobacco" by Notification No. G.S.R. 174 (E) dated 17.3.2012 (w.e.f. 27.2.2010)] :Provided also that in a case, where the CENVAT credit has been taken or utilised wrongly on account of fraud, wilful mis-statement, collusion or suppression of facts, or contravention of any of the provisions of the Act or the rules made thereunder with intention to evade payment of duty, then, the manufacturer shall also be liable to pay penalty in terms of the provisions of section 11AC of the Act.
