2008 (1) TMI 714

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..... Meena, DR, for the Respondent. [Order]. - Heard both sides and perused the record. 2. The appellant filed this appeal against the imposition of penalty of Rs. 50,000/-. The adjudicating authority confirmed the demand of duty of Rs. 1,99,079/- which was paid by the appellants before passing of the adjudication order. The Revenue filed appeal before the Commissioner (Appeals) for imp....

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.... submits that the appellants cleared the waste and scrap generated out of the capital goods on which they have availed Modvat credit and therefore, they are liable to pay the duty. He further submits that the appellants suppressed the fact of removal of goods with intent to evade payment of duty and the Commissioner (Appeals) rightly imposed penalty. 5. After hearing both the sides and on ....

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....the assessee had not disputed that they had paid Modvat credit on capital goods which has been sold as capital scrap and since the issue involved is one of the interpretation of rules, penalty is not imposable. In the present case, I find at the outset, the demand of duty is on the ground that scrap generated out of very old bought out items, on which Modvat credit was not availed by them. However....