https://www.taxtmi.com/caselaws?id=153470 Penalty under Rule 173Q of the Central Excise Rules, 1944 was examined in relation to Modvat credit taken on fictitious gate passes. The appellant had failed to take reasonable steps to verify the duty-paid character of the inputs and the identity of the supplier, contrary to the caution required by the rule and its explanation. Subsequent reversal of credit did not by itself avoid penalty, particularly where no protest or speaking order was obtained at that stage. Penalty was therefore upheld, though the amount was reduced in view of the later reversal. en-us Wed, 25 Nov 2009 00:00:00 +0530 Tue, 23 Jul 2013 18:14:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=153470 Penalty under Rule 173Q of the Central Excise Rules, 1944 was examined in relation to Modvat credit taken on fictitious gate passes. The appellant had failed to take reasonable steps to verify the duty-paid character of the inputs and the identity of the supplier, contrary to the caution required by the rule and its explanation. Subsequent reversal of credit did not by itself avoid penalty, particularly where no protest or speaking order was obtained at that stage. Penalty was therefore upheld, though the amount was reduced in view of the later reversal. Case-Laws Central Excise Wed, 25 Nov 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=153470