Appellate Tribunal reduces export penalty, deeming it unwarranted.

The Appellate Tribunal CEGAT, Mumbai reduced the penalty imposed on the appellants for exporting input without prior permission of the Commissioner from Rs. 20,35,780 to Rs. 10,000. The tribunal deemed the high penalty as unwarranted and a disincentive to export efforts, setting aside the impugned order related to the reversal of Modvat credit and demand of interest. The appeal was allowed under these terms.

---

---

The Appellate Tribunal CEGAT, Mumbai found that the appellants exported input without prior permission of the Commissioner. The tribunal reduced the penalty from Rs. 20,35,780 to Rs. 10,000, stating that reversing duty credit and imposing a high penalty was unwarranted and a disincentive to export efforts. The impugned order was set aside in relation to reversal of Modvat credit and demand of interest. The appeal was allowed with the mentioned terms.

---