2002 (9) TMI 244

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....earing both sides on the application for waiver of pre-deposit of Rs. 9,63,607/- it appeared that the issue being settled, the appeal itself could be taken up for disposal. Both sides agreeing this was done. 2. The appellants manufacture yarn as well as fabrics. They had secured permission for payment of duty on yarn at the time of clearance of their fabrics in terms of Rule 49A of Central Excise....

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....held the act of the assessee of paying duty on exempted goods as not legal or permissible. He also observed that the assessees had already secured the permission under Rule 49A and this action was even more glaring. On his disallowing the Modvat credit and imposing a penalty the assessees filed an appeal. The Commissioner (Appeals) found that there was nothing wrong in the assessees taking credit ....