TMI Blog1998 (6) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... product. Further, these chips were used for inhouse manufacture of Nylon Yarn of 210 Denier which were classified as Fishing Net Yarn. The Modvat credit of Rs. 37,78,333/- taken in respect of various inputs used in the manufacture of such yarn has also been ordered to be reversed because the final product i.e. yarn was cleared on full duty exemption under Notification 27/95-C.E. as amended from time to time. The Commissioner s order also imposed a penalty of Rs. 50,000/- on the appellants. 2. Heard learned Advocate Shri Lakshmikumaran, appearing for the appellants. He argued that the Nylon Polyamide Chips alleged to have been manufactured by them and which are subject of this impugned order-in-original were not manufactured from virgin ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , submitted that there is no dispute on these basic facts. 4. His second argument was with respect to the order in the impugned order-in-original regarding the reversal of the Modvat credit. He submitted that the Fish Net Yarn which was the final product in which the inputs were consumed during its manufacture were finally exported by following the various prescribed procedures. There is no dispute that such export was not carried out. Therefore, the entire Modvat credit on goods exported is available legally under Rule 57F(14). 5. Thirdly, the learned Advocate pointed out that they had during the course of these proceedings already paid an amount of Rs. 1.04 crores towards duty demanded and reversed a credit of Rs. 2.53 lakhs from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtment, but could not be considered in the impugned order-in-original because this argument was somehow not brought out in the adjudication proceedings. Therefore, the law as should have been applied could not be applied. On this ground and on the merits prima facie he has very strong case and yet he has already deposited Rs. 1.04 crores on duty as well as reversed the aforementioned Modvat credit. He prayed that the appeal may be, however, considered without asking for any further pre-deposit. He also prayed that in fact since the appeal concerned a matter which was on a short compass, the appeal on merits could itself be considered at this stage and prayed that the matter may be remanded to the learned original authority for re-considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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