2004 (11) TMI 367

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..... the Respondent. [Order (Oral)]. - After examining 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 .....

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..... on them a penalty of Rs. 2,000/-. The first appellate 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 sub .....

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..... epartment. 5.  The 'Hard Waste' in this case, which was cleared 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 fo .....

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