2006 (1) TMI 651

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....nts: Bipin Verma, JDR ORDER M.V. Ravindran, Member (J) 1. This appeal is directed against the order in appeal which upholds the order wherein the appellants were denied the Modvat credit and penalty imposed on them. 2. The issue involved in this case is that the appellants are manufacturers of sugar in their factory and procured the inputs like Steel plates and dissolved acetylene gas ....

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....isputed. In the case of Mansurpur sugar Mills case the Tribunal in its final order No. A/1561 - 62/05 dated 9.8.2005 and final order No. A/1763/05 dated 29.9.2005 in an identical issue of the credit of Modvat on the steel plates used by the manufacturers of sugar, granted relief to the appellants in that case. The ratio of the said case is squarely applicable in this case. Following the said decis....

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....se Rules, 1944. 5. The issue of availment of credit on the dissolved acetylene gas is squarely covered by the ratio of the decision of the Larger Bench and hence the appellant are not eligible for the Modvat credit on the duty paid on such inputs. The appeal of the appellant to that extent is rejected. 6. As regards penalty I find that the appellant took credit of the duty paid on inputs bas....