https://www.taxtmi.com/caselaws?id=47054 Penalty could not be sustained where the duty demand itself had been found unsustainable and the department failed to prove that the bottles sold came from stock on which Modvat credit had been taken. The Tribunal accepted that, once no duty was payable, the foundation for penalty disappeared. It also noted that if Modvat credit had not been availed on the bottles, the assessee was free to sell them in the market without prior permission from the Commissioner. A penalty based on alleged non-intimation or on a rule inapplicable to the facts was therefore not maintainable. en-us Fri, 04 Jun 2004 00:00:00 +0530 Sat, 15 Jun 2024 12:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=47054 Penalty could not be sustained where the duty demand itself had been found unsustainable and the department failed to prove that the bottles sold came from stock on which Modvat credit had been taken. The Tribunal accepted that, once no duty was payable, the foundation for penalty disappeared. It also noted that if Modvat credit had not been availed on the bottles, the assessee was free to sell them in the market without prior permission from the Commissioner. A penalty based on alleged non-intimation or on a rule inapplicable to the facts was therefore not maintainable. Case-Laws Central Excise Fri, 04 Jun 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=47054