1998 (12) TMI 290

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..... t the Order-in-Original No. 7/96, dated 12-1-1996 passed by the Assistant Commissioner of Central Excise, Central Excise Division, Coimbatore III. The facts of the case are that the appellants are manufacturing cotton yarn, polyester cotton blended yarn and they are also availing the credit of duty on the capital goods. It was alleged that they had availed the credit of duty without filing the dec .....

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..... ded that they had broadly given the description of the goods on the declarations. However, non-filing of declaration or late filing of declaration is not a sufficient ground for denial of the Modvat credit particularly when the inputs were duty paid. The inputs were received in the factory premises and were used for the manufacture of the final products. Thus the denial of the credit of duty on su .....

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..... there was no mala fide involved and hence imposition of penalty was not justified. The penalty imposed is, therefore, set aside. Hon ble Supreme Court in the case of Hindustan Steel Ltd., (1978 E.L.T. J 159) has held that no penalty should be imposed for technical or venial breach of legal provisions or where the breach flows from the bona fide belief that the offender is not liable to act in the .....

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