https://www.taxtmi.com/caselaws?id=112841 In cases of fraudulent availment of Modvat credit, penalty under Section 11AC is to be computed with reference to the credit wrongly taken, not merely the amount later utilised before detection. The Tribunal noted that Rule 57-I(4) links the penalty to the credit taken, and therefore a reduction of penalty to the utilised portion alone was not justified where the credit itself was fraudulently availed. The operative effect is that penalty exposure extends to the full wrongful credit entry rather than only the portion actually used. en-us Wed, 17 Dec 2003 00:00:00 +0530 Wed, 02 May 2012 11:04:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=112841 In cases of fraudulent availment of Modvat credit, penalty under Section 11AC is to be computed with reference to the credit wrongly taken, not merely the amount later utilised before detection. The Tribunal noted that Rule 57-I(4) links the penalty to the credit taken, and therefore a reduction of penalty to the utilised portion alone was not justified where the credit itself was fraudulently availed. The operative effect is that penalty exposure extends to the full wrongful credit entry rather than only the portion actually used. Case-Laws Central Excise Wed, 17 Dec 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=112841