2004 (4) TMI 455

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.... Shri S. Bhatnagar, JDR, for the Respondent. [Order]. -  Appellants filed this appeal against the Order-in-Appeal whereby the benefit of Modvat credit to the extent of 50% was denied to the appellants on the ground that the manufacturer of the inputs are not entitled for the benefit of Notification No. 29/96-C.E., dated 1-3-1996. 2. The appellants are engaged in the manufactur....

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....tification. No. 29/96-C.E. (N.T.), dated 3-9-1996. The noticee has taken the Modvat credit including the part of deemed credit availed by the suppliers of the inputs as per the list of invoices attached as Annexure 'A'. As per explanation-II read with para 4 of the said Notification the deemed credit availed by the manufacturer of pile cut fabrics is not admissible to those assessees who are avail....

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.... Rules, 1944 read with Section 11A of the Central Excise Act. The noticee is also liable to penal action for contravention of the provisions of Rule 57A read with said Notification, under Rule 57-I(4), 173-Q and 209 of the said rules." 3. The Adjudicating Authority confirmed the demand and imposed penalty. 4. The contention of the appellants is that they were receiving pile cut fab....

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.... of the case are that the appellants are receiving pile cut fabrics cleared under notification No. 29/96. The appellants are availing credit on the strength of invoices showing payment of duty. The appellants are not the manufacturers of pile cut fabrics or availing benefit of the notification No. 29/96-C.E. No notice was issued to the manufacturers of pile cut fabrics for denying the benefit of t....