Modvat credit penalty set aside where no mala fide or revenue evasion was shown despite uncontested duty demand.

Penalty for alleged wrongful utilisation of Modvat credit was not sustained because the Tribunal found no mala fide conduct and no apparent revenue evasion in the availment of credit. The duty demand itself was not contested, but in the absence of fraudulent intent or revenue loss, the penalty was set aside.

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Issues: Whether the penalty imposed for alleged wrongful utilisation of Modvat credit was liable to be sustained.

Analysis: The duty demand was not contested. The Tribunal noted that there was no mala fide and no apparent revenue evasion in the availment of credit.

Conclusion: The penalty was set aside.

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