https://www.taxtmi.com/caselaws?id=271027 Penalty under Section 11AC of the Central Excise Act, 1944 read with Rule 13 of the CENVAT Credit Rules, 2002 was unsustainable because suppression of facts or mis-declaration was not established by cogent material. The credit claim had been made openly on the basis that gas cylinders were capital goods, and in remand proceedings the major part of the demand was reduced after accepting that the goods were admissible as inputs. The records disclosed no substantial evidence of contumacious intent, and prompt payment of the reduced amount within one month of the show cause notice further supported the absence of penalty jurisdiction. The penalty was set aside. en-us Wed, 13 Jan 2016 00:00:00 +0530 Sat, 23 Jan 2016 10:32:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=271027 Penalty under Section 11AC of the Central Excise Act, 1944 read with Rule 13 of the CENVAT Credit Rules, 2002 was unsustainable because suppression of facts or mis-declaration was not established by cogent material. The credit claim had been made openly on the basis that gas cylinders were capital goods, and in remand proceedings the major part of the demand was reduced after accepting that the goods were admissible as inputs. The records disclosed no substantial evidence of contumacious intent, and prompt payment of the reduced amount within one month of the show cause notice further supported the absence of penalty jurisdiction. The penalty was set aside. Case-Laws Central Excise Wed, 13 Jan 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=271027