https://www.taxtmi.com/caselaws?id=84891 Premature availment of Modvat credit before acknowledgement of the declaration was treated as a purely technical lapse, so the penalty was deleted. Unexplained short payment of duty and shortage of goods, however, were sufficient to sustain penal action under Rule 173Q(1)(a), although the quantum was reduced in light of the limited duty involved and the surrounding facts. The note thus distinguishes a procedural irregularity from substantive non-compliance and shows that penalty may be scaled down even where liability is upheld. en-us Wed, 13 Dec 1995 00:00:00 +0530 Mon, 01 Aug 2011 13:12:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=84891 Premature availment of Modvat credit before acknowledgement of the declaration was treated as a purely technical lapse, so the penalty was deleted. Unexplained short payment of duty and shortage of goods, however, were sufficient to sustain penal action under Rule 173Q(1)(a), although the quantum was reduced in light of the limited duty involved and the surrounding facts. The note thus distinguishes a procedural irregularity from substantive non-compliance and shows that penalty may be scaled down even where liability is upheld. Case-Laws Central Excise Wed, 13 Dec 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=84891