Appellate Tribunal allows Modvat credit on duty-paid low-density polyethylene despite exemption

The Appellate Tribunal CEGAT, Mumbai allowed the appeal, holding that duty paid on low density polyethylene can be claimed as Modvat credit, despite goods being duty-exempted by notification. Citing the Everest Converters case, it clarified that duty exemption does not preclude duty payment liability. The department's appeal was dismissed.

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The Appellate Tribunal CEGAT, Mumbai allowed the appeal, stating that duty paid on low density polyethylene can be availed as Modvat credit, even if goods were exempted from duty by notification. The tribunal cited the Everest Converters case, emphasizing that goods exempted from duty can still be liable for duty payment. The appeal by the department was dismissed. (2000 (9) TMI 116 - CEGAT, Mumbai)

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