Appellate Tribunal denies exemption benefits due to violation of condition - Modvat credit issue

The Appellate Tribunal CEGAT, Kolkata denied the appellants the benefit of exemption under Notification No. 5/98-C.E. for their final products due to the violation of condition No. 10, which prohibits availing credit of duty on exempted products or any other products manufactured in the same factory. The denial was upheld as the appellants were found availing Modvat credit for products not eligible for exemption, thus breaching the condition. The appeal was rejected based on the violation of the condition without considering any other arguments presented.

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The Appellate Tribunal CEGAT, Kolkata denied the benefit of exemption Notification No. 5/98-C.E. to the appellants for their final products due to violation of condition No. 10, which prohibits availing credit of duty on exempted products or any other products manufactured in the same factory. The appellants were found to be availing Modvat credit for products not eligible for exemption, leading to the denial of the notification benefit. The appeal was rejected as the condition was deemed violated, and no other arguments were presented.

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