1999 (9) TMI 298

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..... [Order per : G.R. Sharma, Member (T)]. This is an appeal against denial of Modvat credit amounting to Rs. 1,60,20,676/- and imposition of penalty of Rs. 5 lakhs. 2. Shri M.P. Devnath, ld. Counsel submits that Rs. 96,04,584.45 relates to Bills of Entry. He submits that they have already reversed this amount. He submits that out of the remaining amount of Rs. 64,16,086.51, they are not pre .....

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..... sed. He, therefore, submits that penalty may either be set aside or reduced drastically. 3. Countering the arguments Shri S. Srivastava, ld. DR submits that the appellants had taken Modvat credit and retained it with them for quite sometime. He submits that since the Modvat credit has to some extent admittedly been wrongly taken, therefore, the imposition of penalty and quantum thereof are justi .....

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..... ut to a large extent it was not utilised by them. Taking of credit wrongly no doubt is confirmed and therefore, imposition of penalty is sustainable in law. Only the quantum thereof appears to be on the higher side. Looking to the facts and circumstances of the case as also that without waiting for the decision, the appellants had reversed a larger part of the credit taken on their own, we reduce .....

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