2003 (7) TMI 402

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....mar Santosh, SDR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. -  This appeal is directed against imposition of penalty of over Rs. 11 lakhs and demand for interest. The demand arises for wrong availment of Modvat credit by the appellants. The credit was availed twice in respect of the same goods, once on invoices issued by the supplier, namely, Indian Oil Corporation Ltd. and....

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....nbsp; Counsel for the appellants emphasized that in a case of bona fide error no penalty under Rule 57AH or Section 11AC is permissible. Same is the position with regard to demand for interest under Section 11AB of the Central Excise Act also. As against this, the learned SDR has pointed out that there was considerable time lag between taking of the credit second time and its reversal and that the....