https://www.taxtmi.com/caselaws?id=86956 Penalty for alleged failure to verify the identity and bona fides of manufacturers or suppliers before availing Modvat credit was held unsustainable. Rule 173Q(1)(bb) requires the credit claimant to satisfy itself about the identity and address of the supplier issuing the duty-paying document, but the Tribunal treated Modvat as a beneficial scheme and accepted that some leeway is warranted where gate passes pass through intermediaries and payment is made by account-payee cheque or demand draft. In the absence of specific proof of collusion, suppression, or other material showing lack of reasonable care, penalty could not be imposed merely because the transactions were later questioned, and the penalty order was set aside. en-us Wed, 07 May 1997 00:00:00 +0530 Mon, 29 Aug 2011 15:56:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=86956 Penalty for alleged failure to verify the identity and bona fides of manufacturers or suppliers before availing Modvat credit was held unsustainable. Rule 173Q(1)(bb) requires the credit claimant to satisfy itself about the identity and address of the supplier issuing the duty-paying document, but the Tribunal treated Modvat as a beneficial scheme and accepted that some leeway is warranted where gate passes pass through intermediaries and payment is made by account-payee cheque or demand draft. In the absence of specific proof of collusion, suppression, or other material showing lack of reasonable care, penalty could not be imposed merely because the transactions were later questioned, and the penalty order was set aside. Case-Laws Central Excise Wed, 07 May 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=86956