https://www.taxtmi.com/caselaws?id=114741 Wrongful availment of Modvat credit on capital goods contrary to a specific undertaking that depreciation under the Income-tax Act would not be claimed attracts penalty under Section 11AC read with the Central Excise Rules. The subsequent claim of depreciation amounted to a misstatement of material facts, and later reversal of the credit did not extinguish the original penal liability. The reduced-penalty framework under Section 11AC applied, and the restriction of penalty to 25% of the duty involved was sustained, leaving no basis for complete waiver of penalty. en-us Fri, 29 Oct 2004 00:00:00 +0530 Sat, 19 May 2012 15:24:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=114741 Wrongful availment of Modvat credit on capital goods contrary to a specific undertaking that depreciation under the Income-tax Act would not be claimed attracts penalty under Section 11AC read with the Central Excise Rules. The subsequent claim of depreciation amounted to a misstatement of material facts, and later reversal of the credit did not extinguish the original penal liability. The reduced-penalty framework under Section 11AC applied, and the restriction of penalty to 25% of the duty involved was sustained, leaving no basis for complete waiver of penalty. Case-Laws Central Excise Fri, 29 Oct 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=114741