- (1.) The present appeal has been filed under Section 35-G of the Central Excise Act, 1944. The following substantial question of law has been sought to be raised in the appeal :- (i) Whether the respondents are liable to pay the penalty under Rule 173Q of Central Excise Rules, 1944 ?
(2.) Heard Sri Subodh Kumar, learned counsel for the appellant and Sri S.D. Singh, learned counsel for the respondent and perused the record.
(3.) It appears that there was a controversy as to whether the modvat credit will be applicable to welding electrodes. According to the department, modvat credit facility is not available to welding electrodes, it consequently levied penalty. The quantum of penalty was reduced by the first Appellate Authority and entire penalty has been deleted by the Tribunal.;