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2004 (7) TMI 98 - HC - Central ExciseInterest on refund - reversal of credit - condition of non-availment of credit under the exemption notification - HELD THAT - For the purposes of claiming the benefit of the Notification No. 15/94-C.E. dated 1-3-1994 neither any circular has been issued nor the said circular of 1986 has been made applicable in the notification which has been issued in 1994. Hence in our opinion the Tribunal was not justified in taking a view that reversal of the credit having been made by the petitioner after removal of the final products the petitioner was not entitled to the benefit of Notification No. 15/94-C.E. dated 1-3-1994. This view of the Tribunal is in our opinion patently erroneous and contrary to the decision of the five Member Larger Bench of the Tribunal as well as three member bench of the Tribunal and is also contrary to the ratio of the decision of the Supreme Court in the case of Chandrapur Magnet Wire 1995 (12) TMI 72 - SUPREME COURT . In these circumstances the order of the Tribunal dated 1-10-2003 in so far as it relates to denial of the benefit of Notification No. 15/1994-CE is liable to be and is hereby set aside. The petitioner is thus entitled to the benefit of the said Notification No. 15/1994-CE dated 1-3-2004 and reversal of Modvat credit on the inputs namely PVC granules used in the manufacture of PVC/PP bottles which have been admittedly reversed by the petitioner even though after clearance of the final product. Thus the writ petition is allowed and the demand of duty and penalty created by order dated 30-10-2001 and confirmed by the Tribunal is set aside. Any amount already deposited by the petitioner shall be refunded to the petitioner forthwith with interest at 10% per annum from the date of deposit to the date of refund and this refund must be made within two months from today. The petitioner is also entitled for any consequential benefits.
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