https://www.taxtmi.com/caselaws?id=118630 Cenvat credit on replacement goods supplied free of cost turns on whether the original duty-paid goods were actually used or were defective and replaced before use; if both consignments are credited, double credit arises and the factual foundation must be clearly established before sustaining the demand. The note also states that a penalty under Rule 173Q cannot be reduced below the statutory minimum without legal basis or adequate reasons. The matter was therefore remanded for fresh adjudication, including reconsideration of the credit issue and the penalty in accordance with law. en-us Thu, 31 Aug 2006 00:00:00 +0530 Wed, 04 Jul 2012 16:40:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=118630 Cenvat credit on replacement goods supplied free of cost turns on whether the original duty-paid goods were actually used or were defective and replaced before use; if both consignments are credited, double credit arises and the factual foundation must be clearly established before sustaining the demand. The note also states that a penalty under Rule 173Q cannot be reduced below the statutory minimum without legal basis or adequate reasons. The matter was therefore remanded for fresh adjudication, including reconsideration of the credit issue and the penalty in accordance with law. Case-Laws Central Excise Thu, 31 Aug 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=118630