2006 (11) TMI 210

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....al has been preferred under Section 35(G) of the Central Excise Act, 1944 (for short, "the Act") by revenue against the order dated 26-8-2005 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (Annexure P-3), proposing following substantial question of law :- "Whether the Tribunal is correct in allowing credit utilized by the parties before availing exemption Notificati....

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....upheld the demand of duty, but reduced the quantum of penalty. The assessee preferred an appeal before the Tribunal, which has been dismissed. The Tribunal observed :- "In respect of the credit taken on the inputs during the period when the appellants were clearing the goods under exemption notification, they are not contesting this demand. However, they are only asking for the credit in respec....

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....ey are liable for penal action. Keeping in view the facts and circumstances of the case the penalty is reduced to Rs. One lakh in the case of M/s Oswal Paper & Allied and in the other case of M/s. Mukerian Paper Ltd., the penalty is only Rs. 50,000/- and it does not call for further reduction. The appeals are disposed of as indicated above." 5.Counsel for the revenue was not able to substantiat....