1998 (9) TMI 340

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....ocate, for the Respondent. [Order]. - This is an appeal by revenue against Order-in-Appeal No. 347/96, dated 27-5-1996, wherein, the Order-in-Orginal has been modified as follows. 2. Basically the issue concerns the Order-in-Original confirming a demand of Rs. 1,85,624/- by denying Modvat credit on certain goods viz., Simplex Fly Frames and Draw Frames, credit on which was taken duri....

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....ovides for a retrospective effect. The present respondents were aggrieved by the Order-in-Original which held this decision and, therefore, in consideration of their appeal, the learned Commissioner (Appeals) held that in view of the practice followed by him earlier, proportionate credit upto 21-10-1994 at the rate of 2½% per quarter should be disallowed and the balance of the credit in que....

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....rned Advocate Shri J. Shankar Raman, who cited this Tribunal's Final Order No. 1705 to 1706/98 dated 27-8-1998 in the case of M/s Kandagiri Spinning Mills Ltd. wherein, it was held that such credit could not be available prior to 21-10-1994 in view of the decision in the case of Sungunthar Spinning Mills as reported in 1998 (99) E.L.T. 409 (Tribunal). However, on the analogy of Board's Circular No....

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....et aside on the count. Ordered accordingly. 5. The Order-in-Original which is, now restored in view of the aforesaid order setting aside the Order-in-Appeal, has imposed a penalty of Rs. 20,000/- on the present respondents for wrongly taking Modvat credit. I find that when the credit was taken, there was bona fide dispute on the issue and this dispute even included the question of whether ....