https://www.taxtmi.com/caselaws?id=104974 Penalty under Rule 173Q of the Central Excise Rules, 1944 could not be sustained where the show cause notice proposing recovery and disallowance of Modvat credit on capital goods was expressly withdrawn and the credit was allowed. Once the notice was withdrawn, the alleged Rule 57T non-compliance ceased to survive for adjudication, leaving no subsisting finding of violation to support penalty. The view followed the earlier principle that withdrawal of the recovery proposal for Modvat credit also removes the basis for penalty. The penalty was therefore held unsustainable and set aside in favour of the assessee. en-us Thu, 22 Aug 2002 00:00:00 +0530 Thu, 01 Mar 2012 18:54:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104974 Penalty under Rule 173Q of the Central Excise Rules, 1944 could not be sustained where the show cause notice proposing recovery and disallowance of Modvat credit on capital goods was expressly withdrawn and the credit was allowed. Once the notice was withdrawn, the alleged Rule 57T non-compliance ceased to survive for adjudication, leaving no subsisting finding of violation to support penalty. The view followed the earlier principle that withdrawal of the recovery proposal for Modvat credit also removes the basis for penalty. The penalty was therefore held unsustainable and set aside in favour of the assessee. Case-Laws Central Excise Thu, 22 Aug 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104974