2005 (8) TMI 13 - AT - Central Excise

Modvat credit on Tarpaulin - used to cover sugar in order to protect it from dust and moisture

Summary

The Appellate Tribunal CESTAT, New Delhi denied MODVAT Credit of Rupees 83,980/- for tarpaulin used to cover bags of sugar. A penalty equal to the credit disallowed was imposed. The Tribunal upheld the disallowance of MODVAT Credit but set aside the penalty, partly allowing the appeal.