You can use it, though it is often awkward and therefore avoided. Being punished by his form teacher = he is now under punishment Punished by his form teacher = Under punishment now or in the past. This verb form has no tense.
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Mister Micawber
Being punished by his form teacher = he is now under punishment
Punished by his form teacher = Under punishment now or in the past. This verb form has no tense.
Mister MicawberBecause -ing is a present participle but nonfinite