1999 (12) TMI 348

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..... the Respondent. [Order]. - This is an application 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 fall .....

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..... s letter dated 19-10-1989 informed the assessees that 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 .....

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..... ber, 1989 of the differential duty some time on 1-8-1990. 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 .....

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