1998 (10) TMI 186

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....ri Sanjeev Srivastava, JDR, for the Respondent. [Order per : G.R. Sharma, Member (T)]. - The captioned Stay Petition was filed by the Applicants requesting for waiving of pre-deposit of duty. 2. The facts of the case, in brief, are that the Applicants have 2 Units. They were procuring certain inputs for manufacture of Hydraulic Assemblies and other final products. The disputed item before....

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....be cleared either at NIL rate of duty or be treated as exempt and accordingly, demanded duty equivalent to the credit taken on the inputs used in these Hydraulic Assemblies. The Dy. Commissioner disallowed Modvat credit of Rs. 9,35,574.16 and Rs. 5,51,126.52 and ordered it to be recovered. On appeal, the ld. Commissioner (Appeals) dismissed the Appeal of the Assessee, but ordered that the Departme....

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....e in this case, such tractors were exempted even at the time of receipt of the inputs and, therefore, the prohibition under Rule 57C was applicable. We, however, note that the Applicants at the time of clearance of such Tractors reversed an amount equivalent to the credit taken on the inputs. Credit on the inputs in the other 2 situations was rightly taken because the Hydraulic Assemblies transfer....