2002 (11) TMI 707 - AT - Central Excise

Summary

The Appellate Tribunal CEGAT, Mumbai allowed the appeal by remanding the case to verify the aspect of not taking credit under rule 57A. The appellants did not take credit of duty paid on yarn, so the requirement to follow Rule 57F(4) was questioned. The re-credit amount disallowed was Rs. 1,48,704/- with a penalty of Rs. 25,000/- imposed by the Assistant Commissioner. The Commissioner (Appeals) upheld the order, but the Tribunal found merit in the claim that following Rule 57F(4) was not necessary if duty credit was not taken.