2002 (7) TMI 171

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..... relates to imposition of penalty of Rs 2,60,000/- under Rule 173Q of the Central Excise Rules. 2. The appellant's Counsel submitted that the appellants are the manufacturers of Bulk Drugs and Bulk Intermediates falling under Central Excise Tariff Act. They have availed Modvat credit and cleared the goods to different customers for home consumption. They also cleared the goods for captive consump .....

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..... essential ingredient to attract this clause. Rule 173Q(1)(b) of Central Excise Rules is to be read in conjunction and not in isolation with other provisions of Rule 173Q. By majority therein it was held that simple failure could not attract penal action under Rule 173Q. It is well settled position that penal provision had to be construed strictly and in favour of the assessee and not to construe i .....

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..... he said the question of imposition of penalty depends upon the facts of each case. 4. On a careful consideration of the submissions made by both sides and taking into consideration the ratio of the aforesaid decisions of the Tribunal we do not find any justification to impose penalty under Rule 173Q with reference to facts of this case. Accordingly appeal is allowed.
Case laws, Decisions, Jud .....

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