1995 (6) TMI 126 - AT - Central Excise

Summary

The Appellate Tribunal CEGAT, MADRAS heard a stay application regarding a penalty of Rs. 2.00 lakhs and Rs. 32,000/- imposed on the appellants for taking MODVAT Credit before goods were received in their factory. The appellants argued practical difficulties led to the error, but the penalty was reduced to Rs. 2.00 lakhs by the Collector (Appeals). The Tribunal upheld the penalty, noting the violation of rules and the appellants' misunderstanding, and waived the pre-deposit pending appeal.