2005 (9) TMI 162

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..... Rs. 1,00,000/- under Rule 173Q is imposable when the appellant has been held to be eligible for taking Modvat credit and also the demand pertaining to Modvat credit has been set aside. The appellants contended that they have reversed the credit by paying the amount as well as interest and they are eligible for refund of the interest and for setting aside the penalty amount of Rs. 1,00,000/-. It is .....

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..... nt result is that they are eligible for refund of interest paid on the demand which has been set aside. The Department shall refund the interest amount collected in terms of the Larger Bench of the Tribunal's judgment noted supra. The penalty imposed under Rule 173Q is not sustainable when on merits the assessee has succeeded in the case. Respectfully following ratio of the Larger Bench of the Tri .....

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