2008 (7) TMI 653

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....he Respondent. [Order per : P.G. Chacko, Member (J)]. - The respondents in this appeal of the Revenue were engaged in the manufacture of cotton yarn during the material period. Prior to 14-8-1999, they were clearing their products on payment of duty. On the said date, they submitted a letter to the Department saying that they would be availing SSI exemption in respect of the specified goods. Ac....

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....g both sides, we note that the appellant is aggrieved on two counts viz. (a) the lower appellate authority allowed the respondents to avail themselves of SSI benefit under the above Notification without their having exercised such option at the commencement of the financial year and (b) the appellate authority also approved the availment and utilization of MODVAT credit by the respondents for paym....

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....held in the aforecited cases that a few duty-paid clearances of cotton yarn in an early part of the financial year could not be deemed to be opting out of SSI exemption by the manufacturer. In the present case, such clearances were made by the respondents on 5-4-1999 and 22-5-1999. It has been submitted by the learned Consultant that the cotton yarn cleared on 22-5-1999 was the production made pri....