https://www.taxtmi.com/caselaws?id=86270 Under the Modvat scheme, enhanced deemed credit could not be taken on inputs already received and credited before the revised rate became effective, so the differential credit was disallowed. A communication disallowing credit can operate as a valid show cause notice if it clearly conveys the objection and invites a response, so the limitation challenge failed. Wrong availment of inadmissible credit justified penalty where the scheme treated the default itself as penal and separate proof of mens rea was not required. The disallowance, demand, and penalty were all upheld. en-us Thu, 31 Oct 1996 00:00:00 +0530 Tue, 16 Aug 2011 18:28:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=86270 Under the Modvat scheme, enhanced deemed credit could not be taken on inputs already received and credited before the revised rate became effective, so the differential credit was disallowed. A communication disallowing credit can operate as a valid show cause notice if it clearly conveys the objection and invites a response, so the limitation challenge failed. Wrong availment of inadmissible credit justified penalty where the scheme treated the default itself as penal and separate proof of mens rea was not required. The disallowance, demand, and penalty were all upheld. Case-Laws Central Excise Thu, 31 Oct 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=86270