https://www.taxtmi.com/caselaws?id=211091 Penalty under the excise credit provisions is attracted where modvat or cenvat credit has been taken and utilised on inputs that later become unusable, and the material fact of such utilisation and the resulting duty liability is not disclosed to the department. Mere reference in the balance sheet is not sufficient disclosure of the credit transaction or the need to reverse it. The manufacturer is required to reverse the credit or repay the amount once the inputs are destroyed or rendered unusable, and failure to do so supports a finding of suppression of facts with intent to evade duty. The penalty challenge therefore failed and the penalty was upheld. en-us Mon, 18 Apr 2011 00:00:00 +0530 Tue, 28 Feb 2012 16:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211091 Penalty under the excise credit provisions is attracted where modvat or cenvat credit has been taken and utilised on inputs that later become unusable, and the material fact of such utilisation and the resulting duty liability is not disclosed to the department. Mere reference in the balance sheet is not sufficient disclosure of the credit transaction or the need to reverse it. The manufacturer is required to reverse the credit or repay the amount once the inputs are destroyed or rendered unusable, and failure to do so supports a finding of suppression of facts with intent to evade duty. The penalty challenge therefore failed and the penalty was upheld. Case-Laws Central Excise Mon, 18 Apr 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211091