ORDER
J.H. Joglekar, Member (T)
1. On hearing both sides, the main appeal was taken up for disposal on granting waiver of pre-deposit of Rs.33,873/- confirmed as duty on reversal of modvat credit and Rs.5,000/- imposed as penalty.
2. The assessees took credit on air-conditioners falling under sub-heading 8415.00 and on fire extinguishers falling under sub-heading 8422.80. The credit was denied and penalty was imposed. This order was upheld by the Commissioner (Appeals). Hence the appeal.
3. Shri M.H. Patil, learned counsel, contends that the goods were essential for the operation of the assessee’s unit but fairly concedes that in view of the stipulation in terms of rule 57Q these goods are barred from the benefit of this rule.
4. It is the case of Shri Patil that the prohibition was brought into effect from 28.2.1999 vide amending notification 18/99-NT. The credit was taken shortly thereafter due to inadvertence and therefore imposition of penalty was not required.
5. I find that neither authority has put forth the reasons for imposition of penalty.
6. I therefore allow the appeal in part. The orders of denial of modvat and of confirmation of duty are upheld. The orders of imposition of penalty are set aside.
(Dictated in Court)