2009 (5) TMI 741

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...., for the Appellant. Shri V.V. Hariharan, JCDR, for the Respondent. [Order per : Jyoti Balasundaram, Vice-President]. - In this case Modvat credit of Rs. 7,67,080/- has been disallowed on (i) S.S. Tumbling reactor, (ii) Extruder Screw (iii) New herbold Granulator and parts and (iv) Rotor Knives, Bed Knives, flat knives screen etc., on the ground that they were found to be installed in the....

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.... imposition of penalty. As regards the amount of Rs. 1,74,987/-, we see force in the submission of the appellants that they are entitled to this credit for the reason that there was no transfer of goods from their factory to another but the entire factory together with capital goods, plant and machinery were hived off to M/s. Futura Polymers which is another company and in the absence of actual/ph....

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.... entire duty was paid by them with interest, prior to the issue of the show-cause notice merits acceptance in the light of the Hon'ble Delhi High Court decision in K.P. Pouches (P) Ltd. v. Union of India [2008 (228) E.L.T. 31 (Del.)] holding that the purpose of Section 11AC and the provisos thereto is to give a benefit to the assessee if he pays the duty demanded within 30 days of the adjudication....