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2012 (11) TMI 960 - HC - Central ExciseImposition of Penalty - held that:- Modvat credit of Welding Electrodes, as an input or as a capital good, is not permissible. In view of absence of evidence to the effect that Welding Electrodes were used for fabrication of capital goods and in view of the said larger Bench decision, the claim of the assessee in respect of allowance of modvat credit on such Welding Electrodes was rejected, but, at the same time, claim of the Department for penalty was rejected on the ground that the case was contentious and similar cases were being agitated before many forums Inasmuch as, the case was covered by Sub-Rule (1) of Rule 13 of the said Rules, in view of the finding recorded by the Tribunal to the effect that the assessee was not entitled to modvat credit on Welding Electrodes, it became obligatory on the part of the Tribunal to impose at least the minimum penalty of Rs.10,000/-, as prescribed in Sub-Rule (1) of Rule 13 of the said Rules, and that having not been done, we impose the same with a direction to pay the same within a period of three months from today.
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