2016 (6) TMI 509

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....ed against Order-in-Appeal dated 18.10.2005, which upheld the Order-in-Original dated 30.11.,2004, in terms of which CENVAT credit of Rs. 3,45,198/-was disallowed and ordered to be recovered along with interest and penalty of Rs. 10,000/- was also imposed. 2.  The appellant was engaged in the manufacture of polyester texturised yarn, twisted texturised yarn and dyed polyester texturised yarn....

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....n, the credit taken on POY contained in polyester texturised yarn and twisted texturised yarn, dyed polyester texturised yard, etc. further manufactured therefrom was no admissible. 3.  The appellant has contended that (i) POY did not cease to be a input merely because polyester texturised yarn manufactured out of POY was cleared on payment of duty. Rule 9A inter alia allows credit on inputs....

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....ntained in Grey Tex, Yarn (loose) 1005.80 10,594 5,297 2,384 0 18,275 2. Total Grey Tex, Yarn (Loose) (A+B) 4175.00 42,624 21,312 9,591 0 73,527 3. Grey Twisted (W.I.P.) (Manufactured out of Texturised Yarn) 9882.00 24,705 0 3,706 0 28,411 4. Dyeing (W.I.P.) (Manufactured out of Texturised yarn) 6777.41 17,944 0 2,541 0 19,486 5. Grey Twisted (finished Stock) (Manuf....

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..../2002, dated 01.03.2002. Once the polyester texturised yarn was cleared upto 31.03.2003 on payment of duty at concessional rate subject to the condition that the CENVAT credit of duty paid on POY used in the manufacture of polyester texturised yarn was not availed of, the question of admissibility of credit on POY contained in such polyester texturised yarn (which had been cleared on payment of co....