Appellate Tribunal denies MODVAT credit for tarpaulin on sugar bags, penalty set aside

The Appellate Tribunal CESTAT, New Delhi denied MODVAT Credit of Rupees 83,980 for tarpaulin used to cover bags of sugar. The Tribunal upheld the disallowance of MODVAT Credit but set aside the penalty, partly allowing the appeal.

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The Appellate Tribunal CESTAT, New Delhi denied MODVAT Credit of Rupees 83,980/- for tarpaulin used to cover bags of sugar. A penalty equal to the credit disallowed was imposed. The Tribunal upheld the disallowance of MODVAT Credit but set aside the penalty, partly allowing the appeal.

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