2002 (11) TMI 236

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....stice K.K. Usha, President]. - Appeal at the instance of the assessee is directed against the order passed by the Commissioner of Central Excise dated 30-12-2001. 2. Appellant is manufacturing nylon yarn of various deniers including nylon yarn of 210 denier which is exempted from payment of duty vide different notifications during the years 1996-97 to 2000-2001. The period with which we are con....

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....nder Notification No. 67/95-C.E., dated 16-3-95 on nylon chips manufactured and captively used in the manufacture of exempted final product namely nylon yarn of 210 denier. Since the final product was exempted from payment of duty, intermediate product namely nylon chips were chargeable to duty with effect from 1-3-94 as Notification No. 85/91-C.E., dated 30-8-91 which granted exemption to polyami....

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....ture of nylon yarn. Therefore, submission of the assessee before the Commissioner was that the value has to be made on the basis of the costing. Assessee also submits that demand is barred by limitation. 4. The above contentions raised by the assessee were not accepted by the Commissioner. The duty demand to the extent of Rs. 34,00,048/- was confirmed and penalty of equivalent amount was impose....

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....bmitted before us that the Modvat credit reversed would come to an amount of Rs. 32,00,000/-. This is a matter to be verified by the Commissioner to whom we are remanding the case after taking the view that the appellant is entitled to the benefit of the ratio of the decision in J.K. Synthetics Ltd. 6. On the question of valuation also, we find merit in the contention raised on behalf of the ap....