https://www.taxtmi.com/caselaws?id=119966 Modvat credit on transformer oil used in repairing transformers cleared without payment of duty was held inadmissible, so reversal of the credit was upheld. Penalty under Rule 173Q was set aside because the order did not invoke the specific sub-clause attracted by the alleged conduct, which was required to sustain penal liability. Penalty under Section 11AC was reduced because the records showed regular filing of returns and disclosure of material facts, indicating a misinterpretation of Modvat provisions rather than deliberate suppression with intent to evade duty. The duty demand was maintained, but the penalty regime was partially relieved in favour of the assessee. en-us Fri, 01 Sep 2006 00:00:00 +0530 Sat, 14 Jul 2012 13:18:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=119966 Modvat credit on transformer oil used in repairing transformers cleared without payment of duty was held inadmissible, so reversal of the credit was upheld. Penalty under Rule 173Q was set aside because the order did not invoke the specific sub-clause attracted by the alleged conduct, which was required to sustain penal liability. Penalty under Section 11AC was reduced because the records showed regular filing of returns and disclosure of material facts, indicating a misinterpretation of Modvat provisions rather than deliberate suppression with intent to evade duty. The duty demand was maintained, but the penalty regime was partially relieved in favour of the assessee. Case-Laws Central Excise Fri, 01 Sep 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=119966