https://www.taxtmi.com/caselaws?id=264763 Penalty under Rule 26 of the Central Excise Rules was held unsustainable where metal scrap was sent to job workers for conversion into ingots under Rule 4(5)(a) of the Cenvat Credit Rules, 2004. The dispute was treated as one of interpretation, and the arrangement was found revenue neutral because any duty paid on the scrap would have resulted in corresponding credit to the job workers and duty-paid clearance of the ingots, with credit flowing back through the chain. As the statutory ingredients for confiscation-linked culpability were not established, penalty on the director and authorised signatory could not be sustained. en-us Tue, 28 Oct 2014 00:00:00 +0530 Fri, 02 Oct 2015 23:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=264763 Penalty under Rule 26 of the Central Excise Rules was held unsustainable where metal scrap was sent to job workers for conversion into ingots under Rule 4(5)(a) of the Cenvat Credit Rules, 2004. The dispute was treated as one of interpretation, and the arrangement was found revenue neutral because any duty paid on the scrap would have resulted in corresponding credit to the job workers and duty-paid clearance of the ingots, with credit flowing back through the chain. As the statutory ingredients for confiscation-linked culpability were not established, penalty on the director and authorised signatory could not be sustained. Case-Laws Central Excise Tue, 28 Oct 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=264763