https://www.taxtmi.com/caselaws?id=126403 Modvat credit on capital goods cannot be denied merely because the goods were linked to a transfer of the factory or plant and machinery, where there was no actual physical removal from the assessee's factory. On that basis, credit was allowed for the disputed capital goods. Penalty under Rule 57U(6) was treated as pari materia with Section 11AC, and where duty and interest had been paid before the show-cause notice, the reduced penalty regime applied. The penalty was therefore confined to 25% of the ineligible credit, with no penalty on the credit found admissible. en-us Mon, 25 May 2009 00:00:00 +0530 Tue, 06 Nov 2012 12:43:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=126403 Modvat credit on capital goods cannot be denied merely because the goods were linked to a transfer of the factory or plant and machinery, where there was no actual physical removal from the assessee's factory. On that basis, credit was allowed for the disputed capital goods. Penalty under Rule 57U(6) was treated as pari materia with Section 11AC, and where duty and interest had been paid before the show-cause notice, the reduced penalty regime applied. The penalty was therefore confined to 25% of the ineligible credit, with no penalty on the credit found admissible. Case-Laws Central Excise Mon, 25 May 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=126403