2009 (5) TMI 90

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....r the Appellant. Shri Surender Shah, DR, for the Respondent. [Order per : M. Veeraiyan, Member (T) (Oral)] - Early hearing application by the Department is allowed. This is an appeal against the order of the Commissioner dated 30-4-2004. 2. Heard, both sides. 3. Relevant facts, in brief, are that the appellant is a manufacturer of polyester/nylon filament yarn falling under sub-heading....

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....manufacturing nylon filament yarn, polyamide chips falling under 3908.10 has emerged as a final product and since the same has been used in the manufacture of exempted nylon filament yarn, there is no exemption available to polyamide chips under Notification No. 67/95 dated 16-3-95. Accordingly, demand of Rs. 1,06,97,198/- has been confirmed alongwith interest and equal amount of penalty has been ....

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....ne into manufacture of nylon chips while demanding duty on nylon chips which is not legal and proper. Learned Advocate concedes that duty is payable on polyamide chips but only seeks to adjust towards the duty demanded, Modvat credit reversed on caprolactam. He also submits that in addition to payment of Rs. 88,99,470/- as a result of earlier dispute, a sum of Rs. 17,18,788/- has been paid on 10-3....

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....lyamide chips/nylon chips as final product that too selectively in respect of exempted final product, it cannot be held that the appellant had suppressed any relevant information to the department. Therefore, the imposition of penalty under Section 173Q is not warranted. As the duty liability on the polyamide chips is not contested, we direct that while working the duty demand, the credit attribut....