TMI Blog2005 (6) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... imposed penalties of Rs. 1 lakh each on the partners of the said firm and a few others. The assessee-firm prays for wavier of pre-deposit and stay of recovery in respect of the duty and penalty amounts while the rest of the parties pray for waiver and stay in respect of the penalties imposed on them. 2. Learned Sr. Counsel for the applicants has given a brief account of the facts of the case and submits that Gayatri Textiles have a strong prima facie case against the demand of duty. He has claimed support from the Tribunal s decision in the case of M. Tex D.K. Processors (P) Ltd. v. CCE, Jaipur reported in 2001 (136) E.L.T. 73 (Tri. - Del.) as well as Board s Circular No. 703/19/2003-CX., dated 25-3-2003. The learned Sr. Counsel submits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d s Circular ibid, he submits that, though the Circular was issued subsequent to the period of dispute viz. 1-4-2002 to 31-3-2003, the observations made by the Board in para 2 of the said circular are in the nature of a clarification of the law relating to the trade practice in the textile sector, like aforesaid practice of M/s. Gayatri Textiles. It is submitted at length that if duty requires to be recovered from Gavatri Textiles, on the above clearances, they should be given the benefit of Modvat credit on the inputs used in the manufacture of grey fabrics. According to the Sr. Counsel, the entire exercise would be Revenue-neutral and any intention to evade payment of duty cannot be attributed to the job worker. Learned Counsel has thus c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck the processed goods for subjecting such processed goods to further processes and clearing the final product on payment of duty. In the instant case, the principal manufacturer was admittedly clearing the processed fabrics only on payment of duty. After perusing the order in the case of M. Tex (supra), we note that, to some extent, M/s. Gayatri Textiles can legitimately claim support from that decision. In any case, if duty has to be recovered from the job worker, the benefit of Cenvat credit should be available to them. In the instant case, demand of duty has been worked out without giving this benefit. In an overall view, we are inclined to grant waiver of pre-deposit and stay of recovery in respect of the duty demanded from M/s. Gayatr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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