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TMI Blog2006 (6) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants filed this appeal against the Order-in-appeal passed by the Commissioner (Appeals). 3. The brief facts of the case are that the appellants are engaged in the manufacture of HDPF woven sacks. The appellants were clearing their final products to the domenstic market as well as for export. In respect of the inputs which are used in the manufacture of bags which were to be exported, the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the exported goods. The appellants were not disputing the quantity of credit on such inputs. However, the appellants claimed that instead of 1,48,000 Kgs. of granules, infact 1,43,383 Kgs. granules were used in the manufacture of exported goods. Therefore, they are entitled for the credit in respect of the remaining quantity of granules and this credit comes to Rs. 29,807/- and after making ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter adjustment, the amount has already been paid before the issue of show cause notice. 7. The appellants submitted that in case the demand is confirmed, it is not the case of imposition of penalty as they were under the bona fide belief that as the inputs are not used in the manufacture of exported goods, the appellants are entitled on credit on such inputs. Therefore, there is no mala fide in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not available. 9. In this case, Revenue asked for reversal of credit in respect of inputs used in the manufacture of exported goods. To this proposal, the appellant has no dispute. The appellants are only disputing the amount of demand. The contention is that they have not availed credit on granules which are used in the manufacture of the exported goods and the actual quantity of 1,43,383 K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntention of the appellants that less quantity of granules was used in the manufacture of exported goods. Therefore, the demand was rightly made. However, taking into consideration the facts and circumstances of the case, I find that it is not a fit case for imposition of penalty. The penalty is set aside. Otherwise the impugned order is upheld. 10. The appeal is disposed of in the above terms. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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