2010 (7) TMI 448

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....e Appellant. Shri Virender Chaudhary, DR, for the Respondent. [Order per : Rakesh Kumar, Member (T) (Oral)]. - The facts leading to this appeal are, in brief, as under : 1.1 The appellant is manufacturer of cotton yarn and synthetic yarn of various counts chargeable to Central Excise duty under sub-heading 5205.11 and 5509.90 respectively of the Central Excise Tariff. They also av....

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....envat credit amounting to Rs. 51,06,865/- on the cotton yarn and synthetic yarn considering the same as inputs on the strength of their own invoice No. 321 dated 26-11-2002 under which at the time of de-bonding, they had paid duty on finished goods, semi finished goods, raw material etc. lying in the factory on the date of de-bonding. Since it appeared that the appellant, were not eligible for cen....

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....ed Counsel representing the appellant, while conceding that the appellants were not eligible for the cenvat credit of Rs. 51,06,865/- of the duty paid on the cotton yarn and synthetic yarn at the time of de-bonding, pleaded that since on the same day i.e. on 26-11-2002, the entire stock of cotton yarn and synthetic yarn has been cleared on payment of duty amounting to Rs. 65,73,153/-, the entire c....

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....hey were 100% EOU and had de-bonded on 26-11-2002 in pursuance to the order of the Assistant Development Commissioner at the time of de-bonding, they had paid duty of Rs. 91,68,904/- and there is no dispute this duty included the duty of Rs. 51,06,865/- on the stock of cotton yarn and synthetic yarn lying in their factory at that time. However, after becoming a DTA unit, they took cenvat credit am....