https://www.taxtmi.com/caselaws?id=78924 Penalty under Rule 25 of the CENVAT Credit Rules, 2002 read with Section 11AC of the Central Excise Act was unsustainable where the alleged shortage of inputs was marginal, the goods included an evaporative material, and duty had already been paid before the show cause notice. The Court found no evidence of clandestine removal or intention to evade duty, and held that the requisite mens rea for penalty was absent. On these facts, the penalty was rightly set aside and the finding of no clandestine removal was upheld. en-us Thu, 28 Jan 2010 00:00:00 +0530 Sat, 25 Dec 2010 13:19:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=78924 Penalty under Rule 25 of the CENVAT Credit Rules, 2002 read with Section 11AC of the Central Excise Act was unsustainable where the alleged shortage of inputs was marginal, the goods included an evaporative material, and duty had already been paid before the show cause notice. The Court found no evidence of clandestine removal or intention to evade duty, and held that the requisite mens rea for penalty was absent. On these facts, the penalty was rightly set aside and the finding of no clandestine removal was upheld. Case-Laws Central Excise Thu, 28 Jan 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=78924