2003 (8) TMI 95

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....n condoned by the Assistant Commissioner and credit extended. He has noted the judgment of the Mitcon Jyothi as reported in 1998 (104) E.L.T. 744, wherein imposition of penalty for such procedural lapse has been held to be not sustainable. The appeal before the Commissioner was only on the short issue of imposition of penalty. 2. The revenue contended that the assessee had taken Modvat credit on 11-1-1997. They were in possession of bill of entry, wherein CVD assessed was shown as NIL and copies of receipts towards payment of CVD for Rs. 96,35,017/-. Mere receipts towards duty payment cannot be regarded as duty paid documents as prescribed under Rule 57G. The assessee had taken credit without valid documents and started utilising the sai....

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....documents does not arise. This fact had been noted in the order-in-original which compelled the Commissioner to set aside the penalty, as there was a clerical error showing in the bill of entry as NIL CVD, when in fact the payment had been endorsed. He also relied on the judgment rendered in the case of DCW v. Assistant Collector of Central Excise, Tuticorin as reported in 1996 (88) E.L.T. 31 (Madras) wherein in Para 5, the Madras High Court has held that penalty is not imposable when the action on the appellant is bona fide and there was no intention to evade payment of duty. It has also been held that the Tribunal have clearly established the bona fides of the assessee/petitioner in availing the Modvat credit. Therefore, penalty ought not....