https://www.taxtmi.com/caselaws?id=119086 Penalty was treated as sustainable where irregular Modvat credit had been reversed before issuance of the show cause notice, because authorities dealing with penalty under Section 11AC were distinguished from the credit regime under Rule 13 of the Cenvat Credit Rules, 2002. The earlier order setting aside penalty was therefore reversed. Interest on the reversed credit was held not demandable, as the provisions cited for interest were applied to duty liability and did not support levy on Modvat credit reversal. The relief granted on interest was accordingly upheld, leaving a mixed result: penalty sustained, interest declined. en-us Fri, 03 Mar 2006 00:00:00 +0530 Sat, 07 Jul 2012 18:31:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=119086 Penalty was treated as sustainable where irregular Modvat credit had been reversed before issuance of the show cause notice, because authorities dealing with penalty under Section 11AC were distinguished from the credit regime under Rule 13 of the Cenvat Credit Rules, 2002. The earlier order setting aside penalty was therefore reversed. Interest on the reversed credit was held not demandable, as the provisions cited for interest were applied to duty liability and did not support levy on Modvat credit reversal. The relief granted on interest was accordingly upheld, leaving a mixed result: penalty sustained, interest declined. Case-Laws Central Excise Fri, 03 Mar 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=119086