2010 (2) TMI 471

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..... Rs. 20,000/- whereas Section 11AC of the Act mandates equal penalty? Held that - revenue assailing credit on the ground that inputs not received in packing of boxes. Impugned order indicating that duty paid by suppliers on goods including value of packing. Respondent entitled to credit since duty paid on packing material. Tribunal order also reducing penalty, sustainable. - 26 of 2009 - - - Dated .....

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..... old. The Tribunal has allowed credit of Rs. 6.25 lacs on the goods of full packing of boxes. It has been observed by the Tribunal that duty was paid on the boxes. 3. This Court while admitting the appeal framed the following questions of law :- "(1) Whether the Hon'ble CESTAT can allow availment of Cenvat credit in respect of duty paid packing material which was not received by the Respondent .....

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..... e respondent was entitled to claim Modvat credit. 6. In view of the above, it is held that CESTAT could allow availment of Cenvat credit in respect of duty paid on the packing material. This question is accordingly answered in favour of the assessee and against the Revenue. 7. The Tribunal was right in reducing the penalty and this question is also answered against the Revenue. 8. Resultantl .....

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