https://www.taxtmi.com/caselaws?id=75771 Penalty under rule 13(2) of the Cenvat Credit Rules, 2002 is not automatic merely because Cenvat credit is found inadmissible. The stricter penalty applies only where wrongful availment or utilisation is shown to involve fraud, wilful misstatement, collusion, suppression of facts, or contravention with intent to evade duty. Applying the principles aligned with section 11AC of the Central Excise Act, 1944, the HC noted that no categorical finding of fraud or intent to evade had been recorded against the assessee. Penalty under rule 13(2) was therefore not attracted, and deletion of the penalty was upheld. en-us Mon, 17 Aug 2009 00:00:00 +0530 Thu, 13 May 2010 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=75771 Penalty under rule 13(2) of the Cenvat Credit Rules, 2002 is not automatic merely because Cenvat credit is found inadmissible. The stricter penalty applies only where wrongful availment or utilisation is shown to involve fraud, wilful misstatement, collusion, suppression of facts, or contravention with intent to evade duty. Applying the principles aligned with section 11AC of the Central Excise Act, 1944, the HC noted that no categorical finding of fraud or intent to evade had been recorded against the assessee. Penalty under rule 13(2) was therefore not attracted, and deletion of the penalty was upheld. Case-Laws Central Excise Mon, 17 Aug 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=75771