2017 (10) TMI 549

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....or the Respondent ORDER Per Bench Both the appeals arise out of a common order, were taken up together for disposal. 2. The appellants are engaged in manufacturing 'Polyester Yarn' falling under Tariff Heading 52 of the First Schedule to the Central Excise Tariff Act, 1985 and are availing the credit of duty paid on inputs. They opted to avail exemption under Notification No.30/2004-CE....

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....ation, the original authority confirmed the demand of Rs. 6,42,993/- being the duty payable on the polyester yarn captively consumed in the manufacture of exempted goods under Section 11A (1) of the Central Excise Act, 1944 along with interest and imposed a penalty of Rs. 50,000/- for contravening the provisions of Rule 4 of CER, 2004 and the conditions specified under the Notification No.67/95-CE....

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....he condition of clearing the final product on payment of duty. Hence, the assessees are required to pay appropriate duty on the yarn pertaining to the said stock as on 01.08.2005 with interest under Section 11 AB as held by the lower authority is correct in law. 4. The issue in dispute is whether the appellants are correct in reversing the Cenvat credit attributable to the inputs used in the ma....