2001 (10) TMI 100

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..... claimed Modvat credit of Rs. 68,527/- for the quarter ending September, 1996 and of Rs. 49,561/- for the subsequent quarter ending with December, 1996. 2.On March 21, 1998 the adjudicating authority disallowed the credit and imposed a penalty of Rs. 19,000/-. This was so done on the ground that the unit was actually manufacturing polythene sheets and tubes. The respondent appealed. The Commissio .....

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..... l on a subsequent date, it was not entitled to claim Modvat credit for the manufacture of sheets etc. as it was not registered for that purpose during the two relevant quarters. Thus, the view taken by the Commissioner (Appeals) and the Tribunal cannot be sustained. 4.Admittedly the polythene bags can be made only from polythene sheets. Thus, the manufacture of polythene sheets would not be cont .....

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..... hapter heading given in the declaration, due to change in the practice of classification which does not affect the rate of duty". A copy of the circular is placed on record as Mark 'A'. 7.It is the admitted position that the inputs used by the respondent met with the requirements of the rules. So far as the end product is concerned, sheets were essential for the manufacture of polythene bags. A .....

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