2010 (10) TMI 558

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..... Shri R. Nagar, SDR, for the Respondent. [Order]. -  As per facts on record the appellant is engaged in the manufacture of syringes and parts thereof whereas the syringes are dutiable the parts are not. The appellant was availing the benefit of Modvat credit of duty paid on the inputs used in the manufacture of both the above products. The syringes as well as the parts were being cl....

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....excess of the quantum of 10% of the value of the goods. Accordingly he set aside the duty confirmation. However he upheld the penalty part on the ground that in terms of Rule 6(b)(ii) the appellants have raised Central Excise Invoices showing payment of duty on the syringe parts, which were otherwise exempted, so as to enable their buyers to avail the modvat credit. 4. The appellant's cont....

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....ase the entire period is covered by the said rule, which was introduced with effect from 1-3-07. As such the penalty imposition under the said rule in the second case involving penalty of Rs. 1,03,699/- is justifiable. 6. As is seen the appellate authority has accepted the stand of the appellant that the duty paid by them on the exempted product was more than the reversal required to be ma....