https://www.taxtmi.com/caselaws?id=380284 Penalty under the Cenvat Credit Rules was examined for excess credit wrongly taken on capital goods received from a 100% EOU and reversed before the show cause notice. The majority held that penalty could still apply where the credit was taken or utilised with fraud, wilful misstatement, suppression of facts, or intent to evade duty, and found that reversal came only after departmental scrutiny had begun, so the irregularity was not voluntarily disclosed before detection. The majority therefore upheld the penalty and rejected the limitation challenge. The dissent treated the matter as a mere wrong computation of admissible credit without mala fide intent and held that prior reversal negatived penal liability. en-us Fri, 10 May 2019 00:00:00 +0530 Fri, 17 May 2019 16:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=380284 Penalty under the Cenvat Credit Rules was examined for excess credit wrongly taken on capital goods received from a 100% EOU and reversed before the show cause notice. The majority held that penalty could still apply where the credit was taken or utilised with fraud, wilful misstatement, suppression of facts, or intent to evade duty, and found that reversal came only after departmental scrutiny had begun, so the irregularity was not voluntarily disclosed before detection. The majority therefore upheld the penalty and rejected the limitation challenge. The dissent treated the matter as a mere wrong computation of admissible credit without mala fide intent and held that prior reversal negatived penal liability. Case-Laws Central Excise Fri, 10 May 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=380284