2001 (5) TMI 783

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..... On hearing both sides on the stay application the appeal itself was taken up for disposal. 2. Credit of duty taken on capital goods amounting to Rs. 2,47,154/- was disallowed. Penalty of equal amount was imposed. The amount of Rs. 2,20,446/- earlier deposited by the assessee was appropriated. This order of the Joint Commissioner of Central Excise, Mumbai-II, was challenged before the Commissio .....

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..... it is upheld. The imposition of penalty was also correct. However, the quantum equivalent to the duty was not warranted. The Supreme Court in their order in the case of Bharat Heavy Electricals Ltd. v. Collector of Central Excise, Indore [1999 (112) E.L.T. 246 (Tribunal)] as held that in spite of the language of Section 11AC of the Central Excise Act, there was no compulsion on the adjudicating au .....

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