https://www.taxtmi.com/caselaws?id=91098 Penal liability for wrongly taken Modvat credit must be assessed under the law in force when the credit was taken, not under a later-enacted provision. Because the credit was taken before Rule 57U(5) came into force, was not alleged to have been wrongly utilised, and had been reversed, the statutory penalty equivalent to the credit amount could not be applied automatically. The credit remained wrongly taken, but the penalty had to be fixed proportionately to the nature of the violation. The penalty was therefore reduced to Rs. 5,00,000, while the finding on wrongful availment was maintained. en-us Fri, 22 Aug 1997 00:00:00 +0530 Thu, 13 Oct 2011 17:19:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=91098 Penal liability for wrongly taken Modvat credit must be assessed under the law in force when the credit was taken, not under a later-enacted provision. Because the credit was taken before Rule 57U(5) came into force, was not alleged to have been wrongly utilised, and had been reversed, the statutory penalty equivalent to the credit amount could not be applied automatically. The credit remained wrongly taken, but the penalty had to be fixed proportionately to the nature of the violation. The penalty was therefore reduced to Rs. 5,00,000, while the finding on wrongful availment was maintained. Case-Laws Central Excise Fri, 22 Aug 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=91098