CEGAT grants full waiver of duty & penalty pre-deposit in Modvat credit case. Classification variance allowed.

The Appellate Tribunal CEGAT, New Delhi granted complete waiver of pre-deposit of duty and penalty amounts to the appellant, a manufacturer of polythene products, due to a strong prima facie case in their favor regarding Modvat credit. The Tribunal held that minor variation in the classification of inputs did not impact the right to utilize Modvat credit as long as the description of the final product was accurate. The appeal was set for final hearing on 20-2-2001.

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The judgment by Appellate Tribunal CEGAT, New Delhi granted complete waiver of pre-deposit of duty and penalty amounts to the appellant, a manufacturer of polythene products, due to a strong prima facie case in their favor regarding Modvat credit. The Tribunal found that minor variation in the classification of inputs did not affect the right to utilize Modvat credit as long as the description of the final product was correct. The appeal was scheduled for final hearing on 20-2-2001.

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