2011 (9) TMI 859

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..... The prayer in the application is to dispense with the condition of pre-deposit of duty of Rs. 39,534/- and penalty of identical amount. 2. After hearing both the sides, we find that the appellants are engaged in the manufacture of polyester chips, printing ink and adhesives etc. They availed the benefit of Modvat credit in respect of capital goods received by them in the year 1996. The same were .....

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..... capital goods reduced by 2.5% for each quarter of a year. The authorities below have interpreted the said expression that such a reduction is required to be done on reduced values instead of adopting the straight line method. Commissioner (Appeals) has referred to the subsequent amendment in the said provisions which clarified that such reduced rate has to be calculated by straight line method for .....

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..... sequently by amendment in the law. 7. Apart from above, we prima facie agree with the appellant's contention on the point of time bar. As also on the issue of revenue neutrality in as much as the capital goods were cleared by the appellant to their sister concern only, who had availed the benefit of the credit of the duty paid by the appellant. 8. On the above observations, we allow the stay pet .....

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