2004 (1) TMI 216

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....gainst the order-in-Appeal No. 116/2001 9(CBE)(GVN), dated 25-5-2001 passed by the Commissioner (Appeals) by which the Commissioner (Appeals) has allowed the appeal of the assessee by setting aside the order passed by the original authority. The original authority had disallowed the credit amount of Rs. 1,92,828/- availed on capital goods by the assessee and directed the assessee to expunge the sa....

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.... reel hanks and yarn waste (hard waste) which were exempted from duty or chargeable to nil rate of duty. Since the respondents availed the credit on capital goods which were also used by them for goods which are fully exempted from payment of duty, show cause notice was issued to the assessees which culminated in the order-in-original passed by the original authority against which the party moved ....

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....bout credit not to be denied on the ground that intermediate products which arise during the course of manufacture of the final product and such intermediate products are for the time being exempt from the whole of duty, whereas in the instant case, the credit is sought to be denied inasmuch as the capital goods are used both in the manufacture of dutiable and exempted final products. 4. Shri S....

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....n used for manufacture of yarn on plain reel hanks (exempt) and yarn in cone (dutiable) is not admissible. Admittedly in the present case the respondents-assessees are using the capital goods both for exempted as well as dutiable goods. I note that similar issue had come up for consideration before this Tribunal in the case of CCE, Coimbatore v. M/s. Hindustan Spinners Ltd. and Others and the Trib....