2011 (1) TMI 1372

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....) Shri M.H. Patil, Advocate, for the Appellant. Shri Manish Mohan, SDR, for the Respondent. ORDER [Order per : Ashok Jindal, Member (J)] - The applicant is seeking waiver of reversal of credit taken and interest and penalty confirmed by the impugned order. 2. The facts, in short, are that the applicant is the manufacturer of Wool Tops Polyester Tops, Poly Wool Yarn and Grey Fabric/proces....

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.... water for separating grease from the wool and thereafter this wool goes for the manufacture of final product. As the grease separated from the grease wool, the said grease (which is exempt from duty) is cleared by the applicant without reversal of any credit. He submitted that the said grease is a by-product and for clearance of by-product, reversal is not required as held by the Hon'ble Apex Cou....

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....tion of the learned Advocate that their final product is wool top/fabrics and not grease and without separating grease from grease wool they cannot manufacture the final product. Prima facie we find that the applicant has made out a case in their favour on this stage. Accordingly, we waive the requirement of pre-deposit of entire demand, interest and penalty and stay demand thereof during pendency....