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2005 (12) TMI 480

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..... This appeal is directed against the Order-in-Appeal dated 24-9-2003 wherein it was held that the appellants are liable to pay duty on the inputs lying in stock as on 1-8-1997. 2. The relevant facts that arise for consideration are that the appellants are manufacturers of M.S. Ingots and Billets falling under Chapter 72. The appellants were availing Modvat benefit. From 1-8-97 the appellants .....

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..... o the extent of duty demand but reduced the penalty to Rs. 10,000/-. Hence, this appeal. 3. Heard both sides, considered the submissions and perused the records. I find that show cause notice has been issued on a ground which is not correct in law. The relevant portion of the show cause notice is found in para 3 which is reproduced below :- From the perusal of the records of the assessee it a .....

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..... of Modvat. Notification No. 33/97-C.E. (N.T.) dated 1-8-99 inserted clauses (c) (d) in the said rule. The said notification did not say anything other than insertion of these clauses in Rule 57F(17). Rule 57F(17) during the relevant period stood as follows :- Notwithstanding anything contained in sub-rule (12) of Rule 57A, any credit of specified duty lying unutilized. From the above it i .....

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..... inputs lying unutilised on 1-8-1997 having stood lapsed in terms of Rule 57F(17)(c) of erstwhile Central Excise Rules, 1944, no further duty to be demanded in respect of inputs lying in stock - Section 11A of Central Excise Act, 1944. Again the Tribunal in the case of CCE, JSR. v. Ravi Hi-Tech - 2004 (175) E.L.T. 624 (Tri.-Kolkata) had an identical issue before it wherein it is held that Cenvat/ .....

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