https://www.taxtmi.com/caselaws?id=4073 Duty on finished goods returned to the factory was upheld where the goods had been cleared on payment of duty and came back outside the processes contemplated by Rule 16. Recovery of Modvat credit on inputs and capital goods was set aside because the department invoked Rules 57-I and 57U after those provisions had been substituted and were no longer in force on the date of notice. The connected penalties also failed: the penalty tied to the credit disallowance fell with that demand, and the remaining penalty was unsustainable in view of the bona fide interpretative dispute. The appeal therefore succeeded only in part, on the credit demand and related penalties. en-us Mon, 05 Nov 2007 00:00:00 +0530 Mon, 19 May 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=4073 Duty on finished goods returned to the factory was upheld where the goods had been cleared on payment of duty and came back outside the processes contemplated by Rule 16. Recovery of Modvat credit on inputs and capital goods was set aside because the department invoked Rules 57-I and 57U after those provisions had been substituted and were no longer in force on the date of notice. The connected penalties also failed: the penalty tied to the credit disallowance fell with that demand, and the remaining penalty was unsustainable in view of the bona fide interpretative dispute. The appeal therefore succeeded only in part, on the credit demand and related penalties. Case-Laws Central Excise Mon, 05 Nov 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=4073