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TMI Blog1996 (8) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... G.R. Sharma, Member (T)]. Shri A.N. Haksar, the learned Senior Advocate appearing for the applicants submits that M/s. J.K. Synthetics have two units, one at Kota and the other at Jhalawar. He submits that wash water was sent by Kota unit to Jhalawar unit for recovery of caprolactum. He further contends that the department alleged that a larger quantity of captrolactum on which Modvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue has occurred to the Government, he submits that since nylon chips manufactured by the Jhalawar unit were used for conversion into yarn by the Kota unit if duty had been paid by the Jhalawar unit and an equal amount of Modvat credit would have been taken by the Kota unit and thus there was no loss of revenue to the Government. He prays that pre-deposit of the amount of duty and penalty may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation may be rejected. 3. Heard the submissions of both sides, we find that a very important legal point is involved in this case and needs a detailed examination. The entire issue is contentious and debatable. Having regard to the fact that even if Jhalawar unit is treated as an independent unit, they would have been asked to pay duty on nylon chips and if they had paid duty on nylon chips, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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