https://www.taxtmi.com/caselaws?id=54594 When the underlying Modvat demand was set aside on merits, the penalty imposed solely in relation to that demand could not survive and was quashed under Rule 173Q. On the same reasoning, interest collected pursuant to the unsustainable demand was refundable, and the assessee was entitled to recover the interest paid. The decision applies the principle that consequential penal and monetary liabilities fall away once the substantive excise demand is defeated. en-us Mon, 05 Sep 2005 00:00:00 +0530 Thu, 21 Oct 2010 10:18:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54594 When the underlying Modvat demand was set aside on merits, the penalty imposed solely in relation to that demand could not survive and was quashed under Rule 173Q. On the same reasoning, interest collected pursuant to the unsustainable demand was refundable, and the assessee was entitled to recover the interest paid. The decision applies the principle that consequential penal and monetary liabilities fall away once the substantive excise demand is defeated. Case-Laws Central Excise Mon, 05 Sep 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54594