https://www.taxtmi.com/caselaws?id=265496 The Commissioner (A) ruled in favor of the respondent in a case involving incorrect credit taken on capital goods, stating that interest and penalty are not imposable when duty is paid before the issuance of a show cause notice. The court emphasized that if credit is reversed before utilization, no interest liability arises. The judgment highlighted that pre-payment of duty before a show cause notice precludes the imposition of interest and penalty, emphasizing that once duty liability is discharged before the notice, deliberate malafide cannot be alleged. en-us Mon, 21 Sep 2015 00:00:00 +0530 Fri, 09 Oct 2015 11:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=265496 The Commissioner (A) ruled in favor of the respondent in a case involving incorrect credit taken on capital goods, stating that interest and penalty are not imposable when duty is paid before the issuance of a show cause notice. The court emphasized that if credit is reversed before utilization, no interest liability arises. The judgment highlighted that pre-payment of duty before a show cause notice precludes the imposition of interest and penalty, emphasizing that once duty liability is discharged before the notice, deliberate malafide cannot be alleged. Case-Laws Central Excise Mon, 21 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=265496