2013 (6) TMI 631

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..... appellant that ELS is totally different from HSD holding that ELS is not eligible for purpose of modvat credit. We find that there is no doubt about the fact that low sulphur diesel is environmentally cleaner than the HSD but there is no reason to say that it is totally different from the HSD. Since the HSD is excluded from the purview of modvat credit eligibility, there is no reason to allow the .....

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..... gaged in the manufacture of synthetic yarn. They were availing modvat credit in respect of Extra Low Sulphur oil (ELS), utilised as a fuel for the generating sets. They were issued six show cause notices proposing denial of modvat credit availed by them in respect of ELS. It was the view of the department that ELS is nothing but High Speed Diesel (HSD) which is specifically excluded from the categ .....

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..... s that it was wrong on the part of the Commissioner (Appeals) to call ELS as a substitute of HSD and not allowing the modvat credit. It is the contention of the appellant that HSD would not automatically mean to include ELS even if it is assumed that ELS is substitute of HSD. It is their contention that since ELS being different from HSD, they are very much eligible to avail the modvat credit as h .....

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..... ur HSD i.e. ELS-HSD with effect from 01.10.1999. Following the minutes of meeting, Commissioner (Appeals) came to the conclusion that ELS-HSD is substitute for the HSD and not altogether a different commodity as it has the same use as of the HSD. He rejected the contentions of the appellant that ELS is totally different from HSD holding that ELS is not eligible for purpose of modvat credit. We fin .....

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..... s chargeable on the modvat credit denied. With regard to setting aside of penalty by the Commissioner (Appeals), we note that Commissioner (Appeals) has taken a view that since the show cause notice was not issued within the normal period of limitation and there is no allegation of suppression of facts and wilful misstatement, the penalty was set-aside by the Commissioner (Appeals). We do not find .....

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