1999 (12) TMI 261

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....he Respondent. [Order]. - The appellants have challenged the Order-in-Appeal passed by the Commissioner (Appeals), Chandigarh by which a penalty of Rs.10, 000/- had been imposed on them. In paragraph 5 of the impugned order, the Commissioner (Appeals) had held as under :  "The Modvat credit is allowed and the orders regarding imposing of penalty for non-compliance of procedure are up....

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....nalty could have been imposed on the appellants after allowing the Modvat credit and the grounds on which the penalty has been imposed, namely, non-observance of Trade Notice No. 20/93 was not sustainable since even under Rule 173Q, contravention of a Trade circular was not a valid cause for imposing the penalty. He refers to the Tribunal decision in CCE v. Didar Steel Complex Pvt. Ltd. [1996 (87)....

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....on was very much within the scope of Rule 173H. He also draws attention to the Apex Court decision in the Subhash Photographic v. U.O.I. [1993 (66) E.L.T. 3 (S.C.)] wherein in paragraph 15 the Apex Court had observed that in statutes like the Customs Act, it has to be kept in mind that such legislation can be properly administered only by constantly adjusting it to the needs of the situation and t....