2010 (8) TMI 321

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....for the Respondent. [Judgment per : J.P. Devadhar, J. (Oral)]. - Heard learned Counsel for the parties. 2.The appeal is admitted on the following questions of law : (A)Whether imposition of penalty under Rule 173Q of the erstwhile Central Excise Rules, 1944 read with Rule 57-I(4) ibid, is to be necessarily interpreted as mandatory penalty under Rule 57-I(4) of the erstwhile Central Excise Rul....

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....her received any raw material in their factory nor undertaken any manufacturing activity in their factory and had issued fabricated invoices, notice was issued to the respondent-assessee to show cause as to why the Modvat credit of Rs. 2,63,509/- should not be disallowed and penalty and interest under Rules 57-I(4) and 57-I(5) of the Central Excise Rules, 1944 should not be recovered from the asse....