TMI Blog2005 (7) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... Order No. A/1425/2005-WZB/C-III - Dated:- 19-7-2005 - [Order] - The appellants are engaged in the manufacture of various articles of plastic such as chairs, stools, tables, etc. and were availing the benefit of Modvat credit in respect of inputs, in terms of Rule 57A. They had also taken the benefit of Modvat credit on various capital goods, in terms of the provisions of Rule 57Q. 2. The appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal penalty of Rs. 14.00 lakhs was also imposed. The said order of the Commissioner is now impugned before us 4. We have heard the id. Advocate Shri C.S. Lodha and Shri Bidhan Chandra, the Id. DR for the Revenue. 5. The id. Advocate does not dispute that the credit availed by them, in respect of inputs, is required to be reversed back, inasmuch as the said inputs were not issued for use in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to in Rule (7) of the Cenvat Credit Rules, 2002. The Appellants' contention is that they have complied with the condition of the said Rules, inasmuch as at the time of clearance of the damaged capital goods, they have assessed the duty liability on the same and have paid the duty. There is no dispute about the above factual position. He also submits that the capital goods in question were in us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken by the appellant is not justified. We accordingly, set aside the demand for duty of Rs. 33,39,917/- confirmed by denying the credit in respect of capital goods and penalty of Rs. 14.00 lakhs. The demand of duty of Rs. 44,59,552/- relatable to Modvat credit in respect of inputs destroyed in the fire is, however, confirmed, as not contested. 7. The appeal is disposed of in above terms. (Ope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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