TaxTMI 
TaxTMI 
2006 (6) TMI 371
X X X X Extracts X X X X
X X X X Extracts X X X X
....e, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - These appeals are by the Revenue, aggrieved by an order passed by learned Commissioner (Appeals) allowing the benefit of deemed Modvat credit to the respondents under Notification No. 29/96-CE (NT), dated 3-9-96 in respect of the differential duty paid by them on processed cotton fabrics (denim fabrics) at the time of clearance ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ication of the dispute; the original authority disallowed the deemed credits taken on the additional amounts of duty paid by the assessee at the time of clearance of the goods from their depot. It also imposed penalties on them. In the appeals preferred by the assessee against the orders of the original authority, learned Commissioner (Appeals) took the view that deemed credit of duty was admissib....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ufactured and cleared by the respondents were declared as final products and its raw materials were declared to be inputs, for the purpose of the above Notification. It was further declared by Govt. in the above Notification that the duty of excise under the Central Excise Act, the Additional Duty under Section 3 of the Customs Tariff Act and the Additional Duty of Excise under Section 3 of the Ad....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... was the total duty paid on the goods by the time it was cleared from the depot. Deemed Modvat credit on inputs was admissible to them to the extent of 50%/60% of this duty as rightly held by learned Commissioner (Appeals). The fact that a part of this duty was paid at the time of clearance from the factory and the balance paid at a later stage at depot was immaterial. What matters is that the app....