1995 (6) TMI 126

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....ts. [Order per :  V.P. Gulati, Member (T)]. -  Stay application. By this application the applicants have pleaded for dispensation of pre-deposit of penalty of Rs. 2.00 lakhs levied on them under Rule 173Q of the Central Excise Rules, 1944 and a further penalty of Rs. 32,000/- under Rule 226 of the said Rules. Penalties have been levied for violations of the rules as the applicants ....

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....er rules. However, since there was practical difficulty in unloading the whole quantity of the goods in bulk into the factory they took the MODVAT Credit on the full amount in respect of the goods received since the appellants were eligible to take MODVAT Credit otherwise. He pleaded that in this background no penalty should have been levied and at best the appellants could have been levied penalt....

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....e factory. The learned Collector (Appeals) has taken note of this irregularity in availing of the MODVAT  Credit which was not available to them under law. It appears that there was some misunderstanding in the minds of the appellants in regard to the stage at which MODVAT Credit could have been taken. However, inasmuch as the penalty levied is to the extent to take care of the interest accru....