https://www.taxtmi.com/caselaws?id=51107 Modvat credit was held inadmissible where inputs were found short soon after receipt, the register entry was missing, and an unretracted statement of the authorised signatory supported unauthorised removal without use in manufacture. On those facts, credit on inputs not used in or in relation to manufacture was irregular and properly disallowed. The penalty under Rule 173Q was also examined on proportionality: although a penalty was warranted because the lapse stood admitted, a penalty equal to the duty was considered excessive, so it was reduced to Rs. 10,000. en-us Tue, 22 Jan 2002 00:00:00 +0530 Wed, 22 Sep 2010 17:28:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=51107 Modvat credit was held inadmissible where inputs were found short soon after receipt, the register entry was missing, and an unretracted statement of the authorised signatory supported unauthorised removal without use in manufacture. On those facts, credit on inputs not used in or in relation to manufacture was irregular and properly disallowed. The penalty under Rule 173Q was also examined on proportionality: although a penalty was warranted because the lapse stood admitted, a penalty equal to the duty was considered excessive, so it was reduced to Rs. 10,000. Case-Laws Central Excise Tue, 22 Jan 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=51107