2004 (11) TMI 367

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..... ning the records and hearing both sides, I am of the view that the appeal itself requires to be disposed of at this stage. Accordingly, after dispensing with predeposit, I take up the appeal. 2. The appellants are manufacturers of Cotton Viscose Blended Yarn . Hard Waste containing Viscose Staple Fibre emerges in the course of manufacture of the said yarn. This Hard Waste (Sub-Heading No. .....

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..... e authority upheld the decision of the original authority. Hence this appeal. 3. Ld. Consultant for the appellants submits that, in their own case, the original authority dropped a similar demand in respect of Hard Waste for a prior period (Apr.-Dec. 2000) as per Order-in-Original dated 08-03-2004 (copy produced by Consultant). It is submitted that the original authority, in the said Order-in- .....

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..... ared without payment of duty during the relevant period, cannot be treated as a final product for purposes of Cenvat Credit Rules. The present demand of duty is based on the premise that the above Hard Waste is a final product of the appellants. The premise is wrong and hence the demand is bad. Consequently, there is no reason for penalty either. 6. In the result, the impugned order is set a .....

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