https://www.taxtmi.com/caselaws?id=104702 Penalty under Rule 173Q of the Central Excise Rules, 1944 was treated as attracted where Modvat-availing inputs and job-worked goods were diverted to spare-parts sales, but the penalty did not have to match the duty amount in every case. The controlling factors were that the assessee itself detected the irregularity, quantified the liability, and paid the duty before issuance of the show cause notice. On those facts, the penalty had to be proportionate to the gravity of the offence and the mitigating circumstances, so equal penalty was considered excessive and reduced. en-us Tue, 22 Jan 2002 00:00:00 +0530 Thu, 01 Mar 2012 10:29:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104702 Penalty under Rule 173Q of the Central Excise Rules, 1944 was treated as attracted where Modvat-availing inputs and job-worked goods were diverted to spare-parts sales, but the penalty did not have to match the duty amount in every case. The controlling factors were that the assessee itself detected the irregularity, quantified the liability, and paid the duty before issuance of the show cause notice. On those facts, the penalty had to be proportionate to the gravity of the offence and the mitigating circumstances, so equal penalty was considered excessive and reduced. Case-Laws Central Excise Tue, 22 Jan 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104702