2006 (12) TMI 397

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.... R. Kesavan, Consultant, for the Respondent. [Order]. - This is an application filed by the Revenue against the Order-in-Appeal No. 140/2006-CE (SLM) dated 17-7-2006 passed by the Commissioner (Appeals) vacating the demand of Rs. 97,714/- made on M/s. Dharmapuri Paper Mills (P) Ltd., Kelavalli. The original authority had demanded the said amount from the appellants on their removing a Diesel....

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..... The Commissioner (Appeals) also relied on the decision of the Tribunal in the case of Salona Cotspin Ltd. v. CCE, Salem [2006 (201) E.L.T. 592 (Tri.)] which had followed the ratio of the Madura Coats (supra) decision. 2. Ld. SDR submits that the findings of the Tribunal in the Madura Coats case that the Circular No. 17/2002 dated 1-7-2002 of the Board applied only to capital goods remove....

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.... 3. I have considered the submissions made by both sides. Rule 3(4) of Cenvat Credit Rules, 2002 as it existed at the time of removal of the impugned required that when the capital goods were removed as such the assessee should pay duty on the transaction value. In the instant case, the assessee removed the impugned goods in 2002 without payment of any duty and paid Rs. 35,000/- by debiting....