1999 (6) TMI 167

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..... R, for the Respondents. [Order]. Today these 17 stay petitions have been posted for hearing. 2. The issue involved in these stay petitions are regarding waiver of payment of 10% penalty imposed by the Assistant Collector in the Order-in-Original for wrongful availment of Modvat credit. The said orders-in-original were confirmed by the Order-in-Appeal passed by the Appellate authority. .....

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..... further by Trade Notice No. 8/96, dated 24-1-1996. The respondents have to follow the prescribed procedure like D3 intimation, separate account in RG 23A Part I etc. They had failed to follow the procedure prescribed under the said trade notice. After hearing the parties Assistant Commissioner confirmed the show cause notices in all 17 nos. and imposed a penalty at the rate of 10% of the duty con .....

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..... . I entirely agree with him that once the availment of Modvat credit has been accepted by the Commissioner (Appeals), it is wrong legally on the part of the Commissioner (Appeals) to uphold the order of the imposing penalty for wrong availment of Modvat credit in terms of Rule 173Q of the Central Excise Rules. The imposition of penalty is for violation or interaction of the rules. Here admittedly .....

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