https://www.taxtmi.com/caselaws?id=2227 Penalty under Section 11AC of the Central Excise Act was held inapplicable because the Modvat credit had been reversed before issuance of the show cause notice, so the statutory basis for penalty was not met. Interest under Section 11AB was also held not payable because the assessee had reversed the credit suo motu and no duty determination under Section 11A(2) was required, meaning the condition for levying interest was not attracted. The demand for both penalty and interest was rejected in favour of the assessee. en-us Tue, 16 Jan 2007 00:00:00 +0530 Tue, 15 Apr 2008 16:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=2227 Penalty under Section 11AC of the Central Excise Act was held inapplicable because the Modvat credit had been reversed before issuance of the show cause notice, so the statutory basis for penalty was not met. Interest under Section 11AB was also held not payable because the assessee had reversed the credit suo motu and no duty determination under Section 11A(2) was required, meaning the condition for levying interest was not attracted. The demand for both penalty and interest was rejected in favour of the assessee. Case-Laws Central Excise Tue, 16 Jan 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=2227