https://www.taxtmi.com/caselaws?id=2770 Rule 57F(1)(ii) applies only where duty-paid inputs have been validly credited under Modvat; where scrap was received without duty payment and no entitlement existed, recovery under Rule 57I and Section 11A was justified because the credit was wrongly utilised. Use of RG-23A Part-II balance to clear non-duty-paid goods also attracted penalty under Rule 173Q, since the conduct passed on an impermissible Modvat benefit. The liability was maintained, but the penalty was reduced as excessive in relation to the amount involved, giving limited relief on quantum only. en-us Mon, 30 Jul 2007 00:00:00 +0530 Wed, 16 Apr 2008 10:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=2770 Rule 57F(1)(ii) applies only where duty-paid inputs have been validly credited under Modvat; where scrap was received without duty payment and no entitlement existed, recovery under Rule 57I and Section 11A was justified because the credit was wrongly utilised. Use of RG-23A Part-II balance to clear non-duty-paid goods also attracted penalty under Rule 173Q, since the conduct passed on an impermissible Modvat benefit. The liability was maintained, but the penalty was reduced as excessive in relation to the amount involved, giving limited relief on quantum only. Case-Laws Central Excise Mon, 30 Jul 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=2770