No penalty on reversal of cenvat credit towards exempted goods after audit objection but before issuance of SCN

CA Bimal Jain When Cenvat credit towards exempted goods has been reversed after audit objection but before issuance of SCN, penalty under Section 11AC of the Excise Act read with Rule 15 of the Credit Rules is not imposable In the instant case, Man Structural Pvt. Ltd. (the Appellant) was engaged in manufacturing of dutiable as well as exempted final products. The Appellant has availed Cenvat credit on input/input services but was not maintaining separate accounts for inputs for manufacturing dutiable as well as exempted final products and also not paying amount equal to 10% of the value of t...