M/S. Forgeweli Limited Vs. Commissioner of Central Excise, - Court Judgment |
| Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi |
| Jan-01-2001 |
| M/S. Forgeweli Limited |
| Commissioner of Central Excise, |
1. appellant filed this appeal against the order in appeal passed by the commissioner (appeals) whereby a penalty of rs.10,000/- was imposed under rule 173q of central excise rules, 1944.2. the brief facts of the case (sic) the appellants are engaged in the manufacture of rough forgings and forged articles and they were availing the benefit of modvat scheme. during the scrutiny of the record, it was found that for the period from 11/96 to 2/97, the appellants wrongly aveiled the modvat credit under rule 57f(4) of central excise rules in their pla account to the tone of rs.3,00,962.98. the appellants reversed the credit. for this irregularity, the penalty of rs.20,000/- was imposed by the adjudicating authority and the same was reduced to rs.10,000/- by the commissioner (appeals).4. the contention of the appellant is that there is no malafide intention for availing the credit in their pla account and without malafide intention penalty cannot be imposed.5. in this case the appellants were taking credit in their pla account from 11/96 to 2/97 wrongly. therefore, the penalty of rs.10,000/- under rule 173q of central excise rules is not excessive. hence the appeal is dismissed.
1. Appellant filed this appeal against the order in appeal passed by the Commissioner (Appeals) whereby a penalty of Rs.10,000/- was imposed under Rule 173Q of Central Excise Rules, 1944.
2. The brief facts of the case (sic) the appellants are engaged in the manufacture of rough Forgings and Forged articles and they were availing the benefit of MODVAT Scheme. During the scrutiny of the record, it was found that for the period from 11/96 to 2/97, the appellants wrongly aveiled the MODVAT credit under Rule 57F(4) of Central Excise Rules in their PLA account to the tone of Rs.3,00,962.98. The appellants reversed the credit. For this irregularity, the penalty of Rs.20,000/- was imposed by the adjudicating authority and the same was reduced to Rs.10,000/- by the Commissioner (Appeals).
4. The contention of the appellant is that there is no malafide intention for availing the credit in their PLA account and without malafide intention penalty cannot be imposed.
5. In this case the appellants were taking credit in their PLA account from 11/96 to 2/97 wrongly. Therefore, the penalty of Rs.10,000/- under rule 173Q of Central Excise Rules is not excessive. Hence the appeal is dismissed.