Penalty u/s 11AC Reversal of credit before issuance of SCN - Whether the Tribunal was correct in holding that demand of interest u/s 11 AB r.w. Rule 57 AH of the erstwhile Central Excise Rules 1944 /Rule 12 of the erstwhile Cenvat Credit Rules, 2001/Rule 12 of the Cenvat Credit Rules, 2002 was not payable if duty was paid before issue of Show Cause Notice notwithstanding delay in payment of Central Excise Duty Held that - The periodicity of such a default appeared to be more than once and in more than one case, the assessee had not observed the procedure prescribed and prevailed during the relevant period - Thus looking at the conduct of the assessee, the bona fides not thus established, the facts herein rightly called for levy of penalty - The Modvat credit irregularly availed was reversed prior to the show cause notice, does not afford a good defence of good faith and could not be sustained in law - CESTAT order to cancel the penalty could not be upheld - The assesse lacked bona fide, hardly any other material which the CESTAT considered to come to a different conclusion Decided in favour of Revenue............................... Central Excise - Case Law
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