TMI Blog2009 (5) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... the Department chooses to treat the polyamide chips/nylon chips as final product that too selectively in respect of exempted final product, it cannot be held that the appellant had suppressed any relevant information to the department. Therefore, the imposition of penalty under Section 173Q is not warranted. - E/3817/2004 - 368/2009-EX(PB) - Dated:- 11-5-2009 - Justice R.M.S. Khandeparkar, Pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Modvat credit taken on caprolactam which has gone into for the manufacture of exempted nylon filament yarn and the issue was decided against them by the Tribunal vide order dated 24-7-1997. As a result, the appellant has reversed the credit amounting to Rs. 88,99,470/- relating to caprolactam used in the manufacture of exempted nylon filament yarn during the period from December 1999 to February 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts like caprolactam and Ti-20 which has gone into for manufacture of such exempted product. Subsequently, only in respect of exempted nylon filament yarn, they are choosing to consider the polyamide chips as a final product and demanding duty. If duty is payable on polyamide chips as final product, then they were eligible for the Modvat credit in respect of inputs namely caprolactam which is sough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finding of the Commissioner. 6. We find from the records that the Department has been treating nylon filament yarn as the final product and has been seeking reversal of the Modvat credit available on caprolactam on the ground that final product is exempted. The fact that nylon chips emerges as a product during the manufacture of nylon filament yarn is true in respect of dutiable as well as non- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is upheld and while demanding the said duty the Modvat credit reversed by the appellant relating to the period December 1999 to February 2001 on the ground that caprolactam was used for the non dutiable nylon filament yarn shall be adjusted. Further, the amount of Rs. 17,18,788/- claimed to have been paid shall be adjusted, subject to verification and the balance of duty alongwith interest shall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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