https://www.taxtmi.com/caselaws?id=102147 Penalty was attracted where excisable goods were removed and used captively without payment of duty, because the Central Excise Rules deem captively consumed goods to have been removed immediately before such use and authorise penalty for contravention. On that basis, liability to penalty was upheld. The quantum, however, had to be exercised proportionately to the circumstances; given the exemption in other periods, the limited non-exempt period, and the assessee's status as a Government Department, the original penalty was found excessive and reduced substantially. en-us Fri, 24 May 2002 00:00:00 +0530 Mon, 13 Feb 2012 17:57:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=102147 Penalty was attracted where excisable goods were removed and used captively without payment of duty, because the Central Excise Rules deem captively consumed goods to have been removed immediately before such use and authorise penalty for contravention. On that basis, liability to penalty was upheld. The quantum, however, had to be exercised proportionately to the circumstances; given the exemption in other periods, the limited non-exempt period, and the assessee's status as a Government Department, the original penalty was found excessive and reduced substantially. Case-Laws Central Excise Fri, 24 May 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=102147