1996 (11) TMI 209

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....R, for the Respondent. [Order per : V.P. Gulati, Member (T)]. -  The issue in the appeal relates to  levy  of  penalty  on the appellants for the reason that they had taken Modvat  credit  wrongly in respect of certain inputs. The amount involved is Rs. 4,70,007.43. 2. The learned Counsel has sought for an adjournment. Since the issue lies in a shor....

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....was taken up was that the appellants were paying a duty of Rs. 8 crores and were handling a large number of documents i.e. over 5000 every month involving large amounts of Modvat credit and urged that these few instances of mistakes made should be taken to be human errors. 4. The learned DR has pleaded that the deptt. has placed trust in the assessees under the SRP scheme and the appellant....

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....e that such errors in the matter of Modvat credit are avoided. The appellants have urged that they had worked out a system to detect such errors. Obviously their system requires modification. The appellants should have their own internal audit system to detect such errors. It has not been brought to our notice that such a system exists to ensure detection of such double entries within a reasonable....