9911796707
TMI Blog1997 (10) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... mber (T)]. The appeal is against the order of the Additional Collector of Central Excise and Customs, Ahmedabad captioned above imposing penalty of Rs. 2,000/- on the appellants under Rule 173Q(1)(bb) of the Rules. 2. The ld. Counsel for the appellant Shri S.J. Vyas contended that the appellants were availing Modvat credit on their finished products. The Department found that they had avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and there was also mention about it in their classification list filed under Rule 173C only Excise Rules. Elaborating on the bona fides of the appellant ld. Counsel further pointed out that the appellants on realising that they wrongly availed of Modvat credit had even without waiting for show cause notice debited the duty in their Personal Ledger Account. The ld. Counsel further submitted that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant had in fact not resisted the demand at all who had already paid it. Therefore he pleaded that the penalty on them should be set aside. 3. Shri S.V. Singh the ld. JDR contended that for imposing penalty under the Rule mens rea is not a necessary ingredient. So long as the violation of provisions of rules is established penalty can be imposed without reference to mens rea. There is also no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thly returns enclosing the invoices for the related transactions, demanding the duty under the extended time limit and imposing penalty on the appellants will not be justified. The facts of the present case are parallel and we respectfully follow the precedent decisions and set aside the penalty, but, at the same time we would hold that as an assessee working under the Central Excise Rules, 1944 t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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