Appellate Tribunal Upholds Penalty, Rejects Interest for Modvat Credit.

The Appellate Tribunal CESTAT, Kolkata upheld a penalty of Rs. 500 imposed on the respondents under Rule 173Q but set aside the interest demanded at the rate of 18% per annum for wrongly availed Modvat credit. The Tribunal rejected the Revenue's appeal, stating that the penalty was upheld for procedural violation, while the interest was not applicable as the credit was not utilized.

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The Appellate Tribunal CESTAT, Kolkata upheld a penalty of Rs. 500 imposed on the respondents under Rule 173Q but set aside the interest demanded at the rate of 18% per annum for wrongly availed Modvat credit. The Tribunal rejected the Revenue's appeal, stating that the penalty was upheld for procedural violation, while the interest was not applicable as the credit was not utilized.

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