https://www.taxtmi.com/caselaws?id=125147 Mere shortage of cenvated input does not, by itself, justify mandatory penalty under Section 11AC of the Central Excise Act when the Cenvat credit has been reversed and there is no independent evidence of clandestine removal. The record showed that the shortage of base oil was the only basis for penalty, but no additional circumstances established that the input had been clandestinely cleared. In these circumstances, penalty was not imposable, and the challenge to the order declining penalty failed. en-us Tue, 27 Jan 2009 00:00:00 +0530 Sat, 20 Oct 2012 10:21:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=125147 Mere shortage of cenvated input does not, by itself, justify mandatory penalty under Section 11AC of the Central Excise Act when the Cenvat credit has been reversed and there is no independent evidence of clandestine removal. The record showed that the shortage of base oil was the only basis for penalty, but no additional circumstances established that the input had been clandestinely cleared. In these circumstances, penalty was not imposable, and the challenge to the order declining penalty failed. Case-Laws Central Excise Tue, 27 Jan 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=125147