2000 (10) TMI 663 - AT - Central Excise

Summary

The appellate tribunal reduced the penalty imposed on a company for availing excess Modvat credit due to an accounting error, from Rs. 50,000 to Rs. 25,000. The company, a regular importer, reversed the excess credit upon detection by the Range Office. The tribunal found the penalty to be appropriate despite the company's plea of clerical mistake by a newly recruited clerk. The penalty reduction was based on Rule 173Q1(bb) and the company's regular compliance with duty payments.