https://www.taxtmi.com/caselaws?id=155201 Penalty under Rule 173Q and Rule 226 of the Central Excise Rules, 1944 was held not sustainable where the assessee had availed SSI exemption and used Modvat credit after crossing the clearance limit. The adjudicating authority accepted that the relevant restriction on credit utilisation operated under Rule 57A, not Rule 57Q, and also found no intention to evade duty or cause loss to the exchequer. As the demand itself was dropped and the factual foundation for penal action was absent, penalty could not be imposed. en-us Thu, 26 Nov 2009 00:00:00 +0530 Mon, 02 Sep 2013 12:20:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=155201 Penalty under Rule 173Q and Rule 226 of the Central Excise Rules, 1944 was held not sustainable where the assessee had availed SSI exemption and used Modvat credit after crossing the clearance limit. The adjudicating authority accepted that the relevant restriction on credit utilisation operated under Rule 57A, not Rule 57Q, and also found no intention to evade duty or cause loss to the exchequer. As the demand itself was dropped and the factual foundation for penal action was absent, penalty could not be imposed. Case-Laws Central Excise Thu, 26 Nov 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=155201