9911796707
TMI Blog1998 (7) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... nst the Order-in-Original No. 32/96, dated 8-2-1996 passed by the Assistant Commissioner of Central Excise, Erode. The facts of the case are that the appellants are manufacturing narrow woven Elastic tapes falling under Heading 58.06. They are also availing credit of duty under Rule 57A of the Central Excise Rules, 1944. It was alleged that during June, 1995 to August, 1995 they had taken modvat c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . By the above impugned order the lower authority disallowed the credit of Rs. 1,39,250/- and also imposed a penalty of Rs. 2,000/-. 2. In the grounds of appeal the appellants submitted that they received the goods in question directly from the dealer under proper Central Excise documents. The dealer was registered with the Central Excise Department vide RC No. 19/94-CX., dated 27-7-1994. They r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dyed yarn was exempt under Notification No. 35/95-C.E., dated 16-3-1995. Therefore, the question of availement of credit on the basis of dealers invoice for the exempted dyed yarn for the duty paid on the grey yarn did not arise and was not permissible in terms of the proviso to Rule 57G(2). This observation of the lower authority is not correct because he himself had admitted that the duty was pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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