When demand itself is not sustainable, penalty cannot be imposed

Commissioner of Central Excise Vs Ultra Tech Cement Limited (CESTAT Kolkata)

Respondent submits that when the demand itself is not sustainable, the question of imposing penalty does not arise. He further submits that the impugned order has erroneously invoked the extended period of limitation under Section 11A(1) of the Act on the ground of willful suppression and imposed penalty under Rule 15(2) of the CENVAT Credit Rules, 2004.

A detailed order has been passed by this Bench of the Tribun

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