https://www.taxtmi.com/caselaws?id=122120 Penalty under Rule 57-I(4) of the Central Excise Rules, 1944 requires wrongful availment of credit by fraud, collusion, wilful misstatement or suppression of facts. Where the credit was reversed before the show cause notice, the inputs were accounted for, and fraudulent taking of credit was not established, a combined penalty under Rule 173Q and Rule 57-I(4) could not be sustained. The matter also notes that the penalty order did not separately specify the quantum under each rule, reinforcing the unsustainability of the composite levy. The principle applied is that penal consequences are not warranted on these facts absent culpable conduct. en-us Tue, 17 Oct 2006 00:00:00 +0530 Wed, 08 Aug 2012 17:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=122120 Penalty under Rule 57-I(4) of the Central Excise Rules, 1944 requires wrongful availment of credit by fraud, collusion, wilful misstatement or suppression of facts. Where the credit was reversed before the show cause notice, the inputs were accounted for, and fraudulent taking of credit was not established, a combined penalty under Rule 173Q and Rule 57-I(4) could not be sustained. The matter also notes that the penalty order did not separately specify the quantum under each rule, reinforcing the unsustainability of the composite levy. The principle applied is that penal consequences are not warranted on these facts absent culpable conduct. Case-Laws Central Excise Tue, 17 Oct 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=122120