Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Rule 12 CENVAT Credit Rules | Pre-2001 MODVAT Claims Cannot Be Disallowed Without Proof of Suppression : CESTAT Chandigarh
CESTAT Chandigarh rules that Revenue cannot invoke Rule 12 of the CENVAT Credit Rules, 2001, to disallow MODVAT credits availed before 01.07.2001 without concrete evidence of suppression or clandestine removal. The demand of ₹1.01 crore was quashed, reinforcing that procedural fairness requires proof of wrongdoing, not mere stock discrepancies.