https://www.taxtmi.com/caselaws?id=54115 Penalty for wrongful Modvat credit could not survive once the underlying credit disallowance was reduced to nil. Rule 57U(6) linked penalty to credit wrongly taken where fraud, suppression, collusion, or intent to evade duty was involved, and Rule 57U(7) made the penalty dependent on the amount of credit ultimately disallowed. Since the disallowance did not remain in force, the penal consequence lost its statutory foundation and could not be detached from the basis on which it was computed. The penalty was therefore held unsustainable and set aside. en-us Tue, 21 Jun 2005 00:00:00 +0530 Mon, 18 Oct 2010 11:04:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54115 Penalty for wrongful Modvat credit could not survive once the underlying credit disallowance was reduced to nil. Rule 57U(6) linked penalty to credit wrongly taken where fraud, suppression, collusion, or intent to evade duty was involved, and Rule 57U(7) made the penalty dependent on the amount of credit ultimately disallowed. Since the disallowance did not remain in force, the penal consequence lost its statutory foundation and could not be detached from the basis on which it was computed. The penalty was therefore held unsustainable and set aside. Case-Laws Central Excise Tue, 21 Jun 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54115