9911796707
TMI Blog2005 (2) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... department after certain investigations, duty was demanded on certain clearances made by them to certain customers and also the Modvat credit taken on Injection Moulding Machine was proposed to be denied on the ground that the said capital goods was used in the manufacture of exempted goods. The demand of duty and the proposal to deny Modvat credit were contested. The dispute was adjudicated upon by the jurisdictional Commissioner who passed the impugned order. 2. Heard both sides. Ld. Counsel for the appellants has not pressed the challenge against a major part of the demand of duty. There is challenge against the demand confirmed by the Commissioner in respect of Scientific apparatus cleared to IGCAR. This demand, amounting to about ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Notification No. 68/95, dated 16-3-1995) in respect of the electrodes cleared to buyers other than M/s. UCAL. After examining the impugned order, we find that this submission is factually correct. Ld. Commissioner has allowed the exemption only in respect of electrodes cleared to UCAL from 16-3-1995. For the same period, the assessee s claim for the benefit of the Notification in respect of the clearances of electrodes to other buyers also should have been considered. 4. The second issue arising for consideration is whether capital goods credit on the Injection Moulding Machine was correctly denied to the assessee. Ld. Counsel submits that there is no dispute of the fact that the said machine was a modvatable capital goods during the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on all goods except the electrodes cleared to customers other than M/s. UCAL from 16-3-1995. As regards such clearances of electrodes, ld. Commissioner is directed to consider the assessee s claim for the benefit of Notification No. 214/86 (as amended by Notification No. 68/95, dated 16-3-1995). On this claim, he shall pass a speaking order in accordance with law after giving the assessee a reasonable opportunity of being heard. Further ld. Commissioner shall allow the benefit of Modvat credit on injection moulding machine to the assessee. Lastly, the penalty on the appellants is set aside. The impugned order will stand modified accordingly. 7. The appeal is disposed of as above. (Order dictated and pronounced in open Court). - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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