2013 (11) TMI 587 - AT - Central Excise

Waiver of Penalty under Rule 173Q of CE Rules Recovery of MODVAT Credit - Held that - Penalty on the appellants has been imposed by the original authority under sub-rule 1(a) and (b) of Rule 173Q the Commissioner (Appeals) has also confirmed the same under the same set of rules - Ongoing through the Rule 173Q of the Central Excise Rule, 1944, it is noticed that sub-rule 1(a) and (b) pertain to imposition of penalty in respect of removal of excisable goods and not in respect of inputs on which the credit has been taken - Prima facie, the appellant has a strong case for waiver of credit the Pre deposit waived of penalty till the disposal of the appeal stay granted.

Summary

The Appellate Tribunal CESTAT New Delhi granted stay on recovery of penalty of Rs.2,00,000/- imposed on M/s. Noble Modules Pvt. Ltd. under Rule 173Q of Central Excise Rules, 1944. The penalty was found to be incorrectly imposed for removal of excisable goods instead of inputs on which credit was taken. Waiver of pre deposit was granted pending appeal disposal.