https://www.taxtmi.com/caselaws?id=98370 Penalty for wrongful availment of Modvat credit was sustained where the assessee had taken credit on the basic customs duty component shown in the Bill of Entry, which was not eligible, and the reversal occurred only after the excess was detected. A claim of clerical error was rejected because there was no supporting material showing that the mistake was attributable to a new clerk or that proper supervision and instructions were lacking. Rule 173Q(bb) was applied on the basis that credit was taken knowingly, or with reason to believe, or that records were not properly maintained. The penalty was upheld in principle, but reduced in quantum to reflect the surrounding circumstances. en-us Mon, 23 Oct 2000 00:00:00 +0530 Fri, 20 Jan 2012 13:09:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98370 Penalty for wrongful availment of Modvat credit was sustained where the assessee had taken credit on the basic customs duty component shown in the Bill of Entry, which was not eligible, and the reversal occurred only after the excess was detected. A claim of clerical error was rejected because there was no supporting material showing that the mistake was attributable to a new clerk or that proper supervision and instructions were lacking. Rule 173Q(bb) was applied on the basis that credit was taken knowingly, or with reason to believe, or that records were not properly maintained. The penalty was upheld in principle, but reduced in quantum to reflect the surrounding circumstances. Case-Laws Central Excise Mon, 23 Oct 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98370