1998 (4) TMI 326

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....Shri M. Ali, JDR, for the Respondent. [Order per : Justice U.L. Bhat, President]. - By the impugned order Commissioner has confirmed the demand of the duty to the extent of Rs. 29,61,025/- and imposed penalty of Rs. 15,00,000/-. Appellant seeks waiver of the requirement of pre-deposit under Section 35F of the Central Excise Act, 1944. Demand relates to the period from August, 1990 to June, 1....

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..... The Note says that the active yeast includes bakers' yeast produced by propagation of special conditions and is generally marketed in the form of pressed yeast in dried form of as liquid yeast. The Commissioner took the view that the propagated yeast is nothing but bakers' yeast in liquor form. This is seriously controverted by the appellant according to whom the yeast in the form in which it is....

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.... Rules, appellant should be entitled it is stated, to Modvat credit of the duty of around Rs. 3.8 lakhs paid on the bought out yeast and the effective duty liability will be reduced to that extent. Shri M. Ali, JDR submitted that the proportion of the yeast used and the yeast propagated, i.e. 1 : 3, as stated by the appellant is not correct. 4. According to the appellant, the conditions of....