https://www.taxtmi.com/caselaws?id=52839 In excise credit matters, penalty for taking and utilising ineligible Modvat credit is not to be imposed mechanically; the assessee's conduct and surrounding circumstances may justify reduction, especially where the ineligible credit is reversed soon after detection. The penalty was therefore upheld in principle but reduced. Interest was held to arise only on wrongful utilisation of the credit, not on the mere making of an incorrect book entry, so the commencement date for interest was linked to utilisation and not to the RG 23A Part II entry. The appeal succeeded only to the limited extent of penalty reduction, while interest liability remained. en-us Fri, 02 Jan 2004 00:00:00 +0530 Fri, 08 Oct 2010 10:37:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=52839 In excise credit matters, penalty for taking and utilising ineligible Modvat credit is not to be imposed mechanically; the assessee's conduct and surrounding circumstances may justify reduction, especially where the ineligible credit is reversed soon after detection. The penalty was therefore upheld in principle but reduced. Interest was held to arise only on wrongful utilisation of the credit, not on the mere making of an incorrect book entry, so the commencement date for interest was linked to utilisation and not to the RG 23A Part II entry. The appeal succeeded only to the limited extent of penalty reduction, while interest liability remained. Case-Laws Central Excise Fri, 02 Jan 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52839