https://www.taxtmi.com/caselaws?id=83874 Modvat credit on ship-breaking scrap was held to remain restricted to Rs. 500 per metric tonne under Notification No. 177/86-CX, because the credit scheme had to be read according to its operative purpose and the tariff reclassification did not remove the restriction for the specified goods. The mismatch between notification sub-headings and revised tariff headings did not entitle the assessee to higher credit, so disallowance of excess Modvat credit was upheld. Penalty under Rule 173Q was not sustained on the facts, as the Tribunal found no basis for penal action in the circumstances, and the penalty was deleted. en-us Wed, 21 Dec 1994 00:00:00 +0530 Mon, 18 Jul 2011 14:33:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=83874 Modvat credit on ship-breaking scrap was held to remain restricted to Rs. 500 per metric tonne under Notification No. 177/86-CX, because the credit scheme had to be read according to its operative purpose and the tariff reclassification did not remove the restriction for the specified goods. The mismatch between notification sub-headings and revised tariff headings did not entitle the assessee to higher credit, so disallowance of excess Modvat credit was upheld. Penalty under Rule 173Q was not sustained on the facts, as the Tribunal found no basis for penal action in the circumstances, and the penalty was deleted. Case-Laws Central Excise Wed, 21 Dec 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=83874