https://www.taxtmi.com/caselaws?id=306 The appeal against the denial of Modvat credit for obsolete capital goods was dismissed by the Tribunal. The denial of credit was upheld as the goods were treated as obsolete and not utilized in the manufacturing process. However, the penalty imposed under Section 11AC was set aside due to the circumstances surrounding the obsolescence of the goods. The judgment underscores the necessity of actual use of capital goods for claiming credit under the Central Excise Act and the importance of judicious imposition of penalties based on individual case circumstances. en-us Tue, 07 Jun 2005 00:00:00 +0530 Sun, 13 Apr 2008 11:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=306 The appeal against the denial of Modvat credit for obsolete capital goods was dismissed by the Tribunal. The denial of credit was upheld as the goods were treated as obsolete and not utilized in the manufacturing process. However, the penalty imposed under Section 11AC was set aside due to the circumstances surrounding the obsolescence of the goods. The judgment underscores the necessity of actual use of capital goods for claiming credit under the Central Excise Act and the importance of judicious imposition of penalties based on individual case circumstances. Case-Laws Central Excise Tue, 07 Jun 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=306