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2004 (12) TMI 88 - SC - Central ExciseWhether the appellants went on paying concessional rate of duty wilfully without availing of Modvat credit with intent to misutilise the Modvat scheme? Held that:- The appellants never opted out of the Modvat scheme. They partly cleared the final products by paying duty at concessional rate without utilising the credit in the payment of duty on final product and partly on the basis of credit which was not admissible. It is important to note that the underlying object behind the notification was to utilise the credit against payment of duty on the final product. In the circumstances, the demand for differential duty, penalty and confiscation subject to payment of redemption fine is valid and justified. Accordingly, we answer the above question in the affirmative i.e. in favour of the department and against the appellants. Before concluding, we may clarify that our judgment is confined to the Notification No. 175/86-C.E., as it stood at the relevant time.
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