2004 (7) TMI 502

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....mar, SDR, for the Respondent. [Order per : Jyoti Balasundaram, Member (J)]. - The application for waiver of pre-deposit of duty of Rs. 16,67,051/- and penalty of Rs. one lakh under Rule 173Q arises out of the Commissioner (Appeals), Gwalior. Out of the above-mentioned amount Rs. 16,11,540/- represents the Modvat credit disallowed on broken shells Rs. 20,684/- represents Modvat credit disallowed....

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....of both the sides. Prima facie, no case against disallowance of Modvat credit on broken shells has been made out as admittedly the shells never reached the factory of the Appellants and therefore, reliance placed by the learned Counsel of the Applicants on decision in the context of Rule 56D where defective inputs which have become defective during the course of manufacture of final products and c....