2010 (6) TMI 438

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....rs, during the subsequent investigations. 2. Learned Chartered Accountant on behalf of the appellants submitted that in this case show cause notice was issued to M/s. Anchal Synthetics also proposing recovery of the rebate sanctioned to them and full amount of duty sanctioned to Anchal Synthetics has been recovered by the department. In this connection, he relied upon the copy of the adjudication order No. 28/ADC-SC/OA/07-08 dated 29-2-2008. It is his submission that in this case the appellant had availed the deemed credit of Rs. 2,54,189/- based on the challans issued by weavers and while sending the goods to the merchant manufacturer reversed the deemed credit and paid half of deemed credit from PLA since whole of this amount (de....

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....situation which can be explained by a hypothetical example. It is quite possible that the grey fabric goes to more than one job worker. Then deemed credit would be availed by the first job worker and he would reverse deemed credit of 2/3 and pay balance from PLA and second job worker who does further processing would do the same and sent to merchant manufacturer. Duty or cenvat credit cannot be recovered from all the three. Naturally in such a situation the department has to make a choice between the three persons who will be equally liable. In this case, in view of the fact that merchant manufacturer has already paid full amount of duty received by them as rebate to the department, the duty demand or demand for cenvat credit from other wou....