https://www.taxtmi.com/caselaws?id=102850 Penalty under the Central Excise Modvat scheme is not supportable where the credit was reversed before notice, no contravention of the credit provisions is established, and no clandestine removal or comparable misconduct is shown. A breach of a customs exemption condition does not by itself justify excise penalty. Customs penalty under Section 112 likewise requires a foundational finding that the imported goods are liable to confiscation; absent that finding, and where rectification occurred before proceedings, the penalty basis is not made out. The text states that the penal demand was set aside, while a further credit-reversal claim was left for the appropriate authority. en-us Fri, 30 Aug 2002 00:00:00 +0530 Thu, 16 Feb 2012 14:55:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=102850 Penalty under the Central Excise Modvat scheme is not supportable where the credit was reversed before notice, no contravention of the credit provisions is established, and no clandestine removal or comparable misconduct is shown. A breach of a customs exemption condition does not by itself justify excise penalty. Customs penalty under Section 112 likewise requires a foundational finding that the imported goods are liable to confiscation; absent that finding, and where rectification occurred before proceedings, the penalty basis is not made out. The text states that the penal demand was set aside, while a further credit-reversal claim was left for the appropriate authority. Case-Laws Central Excise Fri, 30 Aug 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=102850