https://www.taxtmi.com/caselaws?id=234866 Penalty under Rule 13(1) of the CENVAT Credit Rules, 2002 and Section 11AC of the Central Excise Act, 1944 is not automatic on wrongful availment of credit or short payment. Where the assessee reversed the credit and paid duty before the show cause notice, and the notice and revisional order did not set out facts establishing the statutory conditions for penalty, the penalty could not be sustained. The legal principle is that culpable conduct and a valid factual basis must exist before penalty can be invoked; on those facts, the Tribunal's cancellation of penalty was upheld. en-us Fri, 07 Jun 2013 00:00:00 +0530 Thu, 02 Jan 2014 12:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=234866 Penalty under Rule 13(1) of the CENVAT Credit Rules, 2002 and Section 11AC of the Central Excise Act, 1944 is not automatic on wrongful availment of credit or short payment. Where the assessee reversed the credit and paid duty before the show cause notice, and the notice and revisional order did not set out facts establishing the statutory conditions for penalty, the penalty could not be sustained. The legal principle is that culpable conduct and a valid factual basis must exist before penalty can be invoked; on those facts, the Tribunal's cancellation of penalty was upheld. Case-Laws Central Excise Fri, 07 Jun 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=234866