2012 (9) TMI 781

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..... JUDGMENT 1. The Revenue has preferred this appeal against the order passed by the appellate tribunal allowing the appeal filed by the assessee on the ground that when the demands are dropped on any account, then in such a situation, penal provisions cannot survive against the assessee. 2. The assessee was served with a show-cause notice calling upon them to show cause why on a wrong or irregula .....

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..... see has made strong arguments in support of judicial pronouncement regarding their contentions that the CENVAT Credit cannot be denied on account of incorrect depreciation claimed initially and later rectified. Following the judgments of the Tribunal in the case of Terana Shetkari Sahakari Sakhar Karkhana Ltd. v. CCE 2001 (138) ELT 1225 (Trib. - Mum.) has upheld the admissibility of credit. 4. Fu .....

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..... in the show cause notice dated 26.02.2006. Aggrieved by the said order, the assessee preferred the appeal to the Tribunal. 5. The Tribunal relying on the judgments of the Tribunal's throughout the country held that when once the demands are dropped, then in such a situation, the question of imposing the penalty does not arise. That is the correct legal position and therefore, we do not see any .....

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