https://www.taxtmi.com/caselaws?id=112224 Excess central excise duty paid through application of a higher rate could not be neutralised by unilateral recredit in the Modvat account, because the prescribed mechanism required the assessee to seek refund and follow the statutory certificate-and-recovery procedure. The buyer's valid credit on the invoice was unaffected, and correspondence between the parties did not alter the Revenue's position. The duty demand was therefore upheld. On penalty, the absence of mala fides and the fact that the assessee had only departed from the prescribed procedure meant penal action was unwarranted, so the penalty was set aside. en-us Fri, 16 Jul 2004 00:00:00 +0530 Fri, 27 Apr 2012 12:02:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=112224 Excess central excise duty paid through application of a higher rate could not be neutralised by unilateral recredit in the Modvat account, because the prescribed mechanism required the assessee to seek refund and follow the statutory certificate-and-recovery procedure. The buyer's valid credit on the invoice was unaffected, and correspondence between the parties did not alter the Revenue's position. The duty demand was therefore upheld. On penalty, the absence of mala fides and the fact that the assessee had only departed from the prescribed procedure meant penal action was unwarranted, so the penalty was set aside. Case-Laws Central Excise Fri, 16 Jul 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=112224