Absence of Fraud or Willful Misstatement Nullifies Penalty u/s 11AC

Versatile Wires Limited Vs Commissioner of CGST & CX (CESTAT Kolkata) The case of Versatile Wires Limited Vs Commissioner of CGST & CX at the CESTAT Kolkata puts forth a significant ruling related to the imposition of penalties u/s 11AC. The court determined that in the absence of clear evidence of fraud, collusion, willful misstatement, or contravention of the provisions of CENVAT Credit Rules, the penalty cannot be applied. Versatile Wires Limited contended that the alleged suppression of facts, namely a burglary at their factory, was duly reported, and thus the show cause notice iss...