1999 (12) TMI 348

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ation for waiver of pre-deposit of Rs. 7,42,709.63. The application for waiver of pre-deposit was posted for hearing today. Since it was found that the matter is lying in a narrow compass, the appeal itself was taken up for disposal with consent of both sides after waiving pre-deposit. 2. The appellants are manufacturing carbon black which falls under sub-heading 2803.00 of the schedule to the C .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t the restriction regarding the amount of credit of Rs. 800/- will be applicable only to paper and paper board and not to articles of paper and paper bags. Therefore the department specifically informed the appellants that they were entitled to Modvat credit in respect of paper bags. The Modvat credit was taken on 1-8-1990. The show cause notice was issued on 26-9-1990 charging that taking of cred .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... . It is also an admitted fact that letter dated 19-10-1989 clearly said that the restriction regarding amount will not be applicable to inputs used by the assessees. viz. paper bags. When that is the state of affairs the show cause notice proceeds on the basis that the Modvat credit was taken without obtaining any permission from the Central Excise Department. It is an admitted position in law tha .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X