TELCO LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) In this appeal, the appellants have sought setting aside of the penalty amount of Rs. 10,000/ - as imposed on them by the Commissioner (Appeals) after modifying the order -in -original of the Asstt. Commissioner who even disallowed the Modvat credit and imposed penalty on them, as detailed therein.

(2.) The learned Counsel has contended that since the Modvat credit has been allowed by the Commissioner (Appeals) to the appellants, no penalty could be imposed on them for non -compliance of strict procedure laid down under Rule 57T. Therefore, the impugned order deserves to be modified.

(3.) On the other hand, the learned JDR has contended that since the appellants committed breach of the provisions of Rule 57T, penalty has been rightly imposed on them.