2007 (8) TMI 114

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....oner (Appeals) allowing (sic) Modvat credits on capital goods totalling to over Rs. 1.2 crores to the appellants and imposing on them a penalty of Rs. 1 lakh. The appellants had received plates and sheets under Rule 57F(4) of the Central Excise Rules, 1944 from M/s. Hyundai Motors India Ltd. (HMIL, for short) for conversion into auto components. After this conversion, however, they chose to clear ....

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....arts were exempt from payment of duty of excise and, therefore, no credit of duty paid on capital goods used for the manufacture of such goods was admissible to them. Reference was also made to Rule 57R(1), which provided that no Modvat credit was available to capital goods used exclusively for the manufacture of exempted final products. The case of the appellants is that they were at liberty to c....

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....t this decision of the Tribunal was affirmed with the dismissal of Civil Appeal Nos. 4527-4539 of 1996 (filed by the department) by the Hon'ble Supreme Court vide Collector v. Bright Steel Mac Fabrics [1997 (94) E.L.T. A145 (S.C.)]. We have heard learned SDR also, who has reiterated the findings of the Commissioner (Appeals). 2. After considering the submissions, we have found valid challenge i....