Appellate Tribunal upholds denial of Modvat credit for incorrect capital goods claim. Penalty reduced.

The Appellate Tribunal CESTAT, New Delhi upheld the denial of Modvat credit of Rs. 17,123 to the appellants for incorrectly claiming certain goods as capital goods. The penalty imposed was reduced to Rs. 1,000, and the original order was affirmed.

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The Appellate Tribunal CESTAT, New Delhi heard the case regarding Modvat credit of Rs. 17,123 denied to the appellants for wrongly claiming firecrete and shrimkomp as capital goods. The goods were found not classifiable as capital goods under Tariff Headings 38.15 and 38.23 of the CETA. The penalty imposed on the appellants was reduced to Rs. 1,000, and the impugned order was maintained.

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