https://www.taxtmi.com/caselaws?id=91919 Penalty for failure to follow the prescribed excise procedure was not treated as automatic in the MODVAT context. The Tribunal noted that the assessee received major inputs under the procedure contemplated by Rule 57F(2), used some own inputs to manufacture car heater assemblies, and that duty had ultimately been paid with MODVAT credit taken by the recipient. It held that surrounding circumstances, including the assessee's bona fide belief that the goods were being received under the prescribed procedure with departmental permission, had to be considered. On those facts, penalty was held not imposable and relief was granted to the assessee. en-us Wed, 21 Jul 1999 00:00:00 +0530 Fri, 21 Oct 2011 18:19:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=91919 Penalty for failure to follow the prescribed excise procedure was not treated as automatic in the MODVAT context. The Tribunal noted that the assessee received major inputs under the procedure contemplated by Rule 57F(2), used some own inputs to manufacture car heater assemblies, and that duty had ultimately been paid with MODVAT credit taken by the recipient. It held that surrounding circumstances, including the assessee's bona fide belief that the goods were being received under the prescribed procedure with departmental permission, had to be considered. On those facts, penalty was held not imposable and relief was granted to the assessee. Case-Laws Central Excise Wed, 21 Jul 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=91919