TMI Blog2010 (4) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... wrongly availed of the modvat credit. He had never received the actual delivery of the goods alongwith invoices and it was a paper transaction. In these circumstances, the present case is squarely covered by Rajasthan Spinning and Weaving Mills's case. Accordingly, the Tribunal could not have reduced the penalty from Rs.1,88,997/- to Rs.50,000/-. – Decided in favor of revenue - 29 of 2006 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iling the modvat credit under section 57-G of the Act on the basis of the invoices issued by M/s GSW Casting and Forgings, who was a registered dealer. It was found that the goods did not reach the factory premises alongwith the invoices. Accordingly, a show cause notice was served on the respondent asking them to refund the entire modvat credit. The notice also sought to impose the equivalent pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould not have been reduced and equal amount of penalty had to be imposed. He further submits that the assessee has wrongly availed of the modvat credit without actual receipt of the inputs and as the entire transaction was only a paper transaction and fraudulent transaction, therefore, in these circumstances, equal amount of penalty had to be imposed in view of the decision of Hon'ble Apex Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act or the rules made thereunder with intention to evade payment of duty, is mandatory or discretionary in nature and whether it can be reduced by the Tribunal? After hearing the learned counsel for the parties, we are of the considered view that in this case, the assessee has wrongly availed of the modvat credit. He had never received the actual delivery of the goods alongwith invoices an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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