https://www.taxtmi.com/caselaws?id=264850 CENVAT credit taken on invoices issued by grey fabric suppliers was held not to justify invocation of the extended period of limitation where the assessee was not shown to be a party to the alleged fraud and was entitled to avail credit under the prevailing rules. On that footing, the demand was time-barred and could not be sustained. Penalty also failed because excise penalty requires a sustainable demand and culpable conduct; once the assessee was found uninvolved in the suppliers' fraud and the demand itself was barred by limitation, the basis for penalty disappeared. The assessee's appeal succeeded and the Revenue's challenge to the reduced penalty failed. en-us Tue, 30 Dec 2014 00:00:00 +0530 Sun, 04 Oct 2015 12:33:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=264850 CENVAT credit taken on invoices issued by grey fabric suppliers was held not to justify invocation of the extended period of limitation where the assessee was not shown to be a party to the alleged fraud and was entitled to avail credit under the prevailing rules. On that footing, the demand was time-barred and could not be sustained. Penalty also failed because excise penalty requires a sustainable demand and culpable conduct; once the assessee was found uninvolved in the suppliers' fraud and the demand itself was barred by limitation, the basis for penalty disappeared. The assessee's appeal succeeded and the Revenue's challenge to the reduced penalty failed. Case-Laws Central Excise Tue, 30 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=264850