https://www.taxtmi.com/caselaws?id=35270 Rule 57-I(4) of the Central Excise Rules, 1944 provides for a penalty equal to the credit disallowed, but the provision can operate only when the jurisdictional conditions are established on record. Fraud, wilful misstatement, collusion, suppression of facts, or contravention of the Act or rules with intent to evade duty must be affirmatively found before penalty is imposed. Mere absence of proper statutory accounts is insufficient. On that basis, the Bombay HC noted that the penalty was unsustainable where those findings were missing, although the duty demand and other parts of the order remained undisturbed. en-us Tue, 23 Jun 2009 00:00:00 +0530 Tue, 09 Feb 2010 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35270 Rule 57-I(4) of the Central Excise Rules, 1944 provides for a penalty equal to the credit disallowed, but the provision can operate only when the jurisdictional conditions are established on record. Fraud, wilful misstatement, collusion, suppression of facts, or contravention of the Act or rules with intent to evade duty must be affirmatively found before penalty is imposed. Mere absence of proper statutory accounts is insufficient. On that basis, the Bombay HC noted that the penalty was unsustainable where those findings were missing, although the duty demand and other parts of the order remained undisturbed. Case-Laws Central Excise Tue, 23 Jun 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35270