DEEVEEAR REPROGRAPHICS P. LTD. Vs. CESTAT, CHENNAI

JUDGEMENT

(1.) Heard Mr. M.A. Mudimannan, learned counsel for Mr. K. Jayachandran, learned counsel for the petitioner and Mr. A.P. Srinivas, learned Senior Panel Counsel appearing for respondents 2 and 3.

(2.) The petitioner has filed this writ petition challenging the order passed by the first respondent/Tribunal dated 12-3-2004. This order was passed in an appeal filed by the petitioner against the Order-in-Original dated 14-2-2002 passed by the second respondent confirming the demand of duty of Rs. 2,74,292/- and reduced penalty amount to Rs. 2,00,000/-.

(3.) The Tribunal has allowed the petitioner's appeal so far as the denial of Modvat credit is concerned and it held that such denial was not tenable and set aside such findings. If the Tribunal had come to such conclusion, then obviously, the Tribunal ought to have given relief to the petitioner from penalty of equivalent amount namely Rs. 76,540/-. However chose to give partial relief of Rs. 35,000/-. When the main issue relating to denial of Modvat credit itself was set aside, the penalty ought to have been set aside in its entirety and not to a partial extent. To that extent, the impugned order calls for interference.