𝗘𝘅𝗰𝗶𝘀𝗲 – 𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱: 𝗣𝗲𝗻𝗮𝗹𝘁𝘆 𝗡𝗼𝘁 𝗜𝗺𝗽𝗼𝘀𝗮𝗯𝗹𝗲 𝗳𝗼𝗿 𝗜𝗻𝗮𝗱𝘃𝗲𝗿𝘁𝗲𝗻𝘁 𝗟𝗮𝗽𝘀𝗲 𝗶𝗻 𝗖𝗲𝗻𝘃𝗮𝘁 𝗖𝗿𝗲𝗱𝗶𝘁 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: Excess Cenvat credit reversed with interest eliminates the need for a show cause notice and penalty imposition.

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Schott Glass India Pvt Ltd 𝗜𝘀𝘀𝘂𝗲: Penalty under Rule 15(2) is not applicable for inadvertent availing of 100% capital goods credit if promptly reversed with interest. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant mistakenly availed 100% credit on capital goods, reversed the excess 50% credit with interest upon realization.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal found the appellant's lapse in availing excess Cenvat credit to be inadvertent, not fraudulent. As the appellant was eligible for the remaining credit in the next year, and the excess credit was reversed with interest, no penalty was warranted, leading to the penalty being set aside.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Schott Glass India Pvt Ltd. vs. Commissioner of Central Excise – Excise Duty 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 1 December 2022 📜 This ruling emphasizes that penalties are not justified for inadvertent lapses when procedural compliance is promptly corrected.