2009 (11) TMI 445 - HC - Central Excise

Penalty- Whether the respondents are liable to pay the penalty under Rule 173Q of Central Excise Rules 1944? Held that- issue debatable and still debate is going on. No question of penalty arises.

Summary

The Allahabad High Court dismissed an appeal under Section 35-G of the Central Excise Act, 1944 regarding the liability to pay penalty under Rule 173Q of Central Excise Rules, 1944 for welding electrodes. The Tribunal deleted the penalty as the issue of modvat credit availability for welding electrodes was debatable and unresolved. The penalty amount was Rs. 54,000, and no substantial question of law was found, leading to the appeal being dismissed summarily.