CENVAT penalty under Rule 13(2) and Section 11AC remanded for fresh Tribunal consideration after consensus and Supreme Court guidance

Penalty under Rule 13(2) of the CENVAT Credit Rules, 2002 read with Section 11AC of the Central Excise Act, 1944 was in issue, along with whether the Tribunal should reconsider the matter. In view of the parties' consensus and the cited Supreme Court decision, the Bombay High Court set aside the Tribunal's order and restored the matter for fresh decision in accordance with law.

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Issues: Whether penalty under Rule 13(2) of the CENVAT Credit Rules, 2002 read with Section 11AC of the Central Excise Act, 1944 was liable to be imposed or reduced, and whether the matter required fresh consideration by the Tribunal.

Outcome: In view of the parties' consensus and the cited Supreme Court decision, the impugned Tribunal order was set aside and the matter was restored for fresh decision in accordance with law.

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