2001 (7) TMI 439

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....for the Appellant. Shri Rajeev Tandon, SDR, for the Respondent. [Order per : Lajja Ram, Member (T)]. - These are two appeals filed by (1) M/s. La Chem Pharmaceuticals (P) Ltd. and (2) Shri S.S. Nandwana, Managing Director. The Commissioner of Central Excise, Delhi who had adjudicated the matter and disallowed the Modvat credit of Rs. 19,88,497/- and an equal amount of penalty had been imp....

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....t equivalent to 25%. The penalty amount equivalent to 25% along with interest had also been deposited by the Company. 2. In reply, Shri Rajeev Tandon, learned SDR submits that it was the case of floating fictitious Firms, wrongly availing the Modvat credit on the basis of fake/bogus documents and this fact had been admitted by Shri S.S. Nandwana, Managing Director, when his initial stateme....

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....which have been established against both the appellants, we consider that penal action has been rightly taken against both of them. However, taking note of the fact that the appellants had admitted their mistake and had voluntarily paid the disputed amount, we reduce the amount of penalty imposed on M/s. La Chem Pharmaceuticals (P) Ltd. from Rs. 19,88,497/- to Rs. 10 lakhs (Rupees ten lakhs only).....