https://www.taxtmi.com/caselaws?id=78827 Penalty under Rule 13(2) of the Cenvat Credit Rules, 2002 read with Section 11AC of the Central Excise Act, 1944 was found unsustainable where a unit switched from duty payment to exemption under Notification No. 50/2003-C.E. The controversy concerned whether Cenvat credit on inputs in stock and in semi-finished and finished goods had to be reversed before claiming exemption. As the credit liability had already been discharged after departmental intimation and the record did not show deliberate suppression or intent to evade duty, the non-reversal was treated as a matter of legal interpretation rather than contumacious conduct. The penalty was set aside. en-us Thu, 04 Feb 2010 00:00:00 +0530 Mon, 20 Dec 2010 19:03:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=78827 Penalty under Rule 13(2) of the Cenvat Credit Rules, 2002 read with Section 11AC of the Central Excise Act, 1944 was found unsustainable where a unit switched from duty payment to exemption under Notification No. 50/2003-C.E. The controversy concerned whether Cenvat credit on inputs in stock and in semi-finished and finished goods had to be reversed before claiming exemption. As the credit liability had already been discharged after departmental intimation and the record did not show deliberate suppression or intent to evade duty, the non-reversal was treated as a matter of legal interpretation rather than contumacious conduct. The penalty was set aside. Case-Laws Central Excise Thu, 04 Feb 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=78827