https://www.taxtmi.com/caselaws?id=121117 Personal penalty under the Central Excise Act was considered unsustainable where Cenvat credit on capital goods had been taken but not utilised, depreciation had also been claimed under the Income-tax Act, and the credit was reversed with interest before issuance of the show cause notice. The analysis applied the Larger Bench principle that no penalty is warranted when unutilised credit is reversed before use, and treated the voluntary reversal and interest payment as negating the ingredients for personal penalty. On that basis, deletion of the penalty was justified. en-us Thu, 18 Jan 2007 00:00:00 +0530 Thu, 26 Jul 2012 17:21:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=121117 Personal penalty under the Central Excise Act was considered unsustainable where Cenvat credit on capital goods had been taken but not utilised, depreciation had also been claimed under the Income-tax Act, and the credit was reversed with interest before issuance of the show cause notice. The analysis applied the Larger Bench principle that no penalty is warranted when unutilised credit is reversed before use, and treated the voluntary reversal and interest payment as negating the ingredients for personal penalty. On that basis, deletion of the penalty was justified. Case-Laws Central Excise Thu, 18 Jan 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=121117