https://www.taxtmi.com/caselaws?id=84216 Removal of Modvat inputs as such without payment of duty attracted penalty because the lapse caused revenue loss, even though the duty had been paid before the show-cause notice; however, the penalty was reduced to reflect the circumstances. Confiscation of the plant, machinery and building was held to be harsh and unnecessary on the facts and was set aside. The duty already paid was confirmed, as the assessee did not dispute the demand. The stated principle is that a procedural lapse in excise clearance does not eliminate penal liability, but proportionality may justify reduction, and confiscation must be supported by the facts. en-us Thu, 04 May 1995 00:00:00 +0530 Wed, 20 Jul 2011 14:53:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=84216 Removal of Modvat inputs as such without payment of duty attracted penalty because the lapse caused revenue loss, even though the duty had been paid before the show-cause notice; however, the penalty was reduced to reflect the circumstances. Confiscation of the plant, machinery and building was held to be harsh and unnecessary on the facts and was set aside. The duty already paid was confirmed, as the assessee did not dispute the demand. The stated principle is that a procedural lapse in excise clearance does not eliminate penal liability, but proportionality may justify reduction, and confiscation must be supported by the facts. Case-Laws Central Excise Thu, 04 May 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=84216