2004 (6) TMI 193

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..... credit to the appellants on Lubricating Oil and Nitrogen Gas. Both the authorities below have disallowed the credit on these goods in all of Rs. 46,161/- on Nitrogen Gas and Rs. 1,63,805/- on Lubricating Oil as inputs. 2. I have heard both sides and gone through the record. The bare perusal of the record shows that the appellants were initially engaged in job work, and Nitrogen Gas and Lubricat .....

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..... 4. However, the learned counsel has prayed for the setting aside of the penalty and interest which has been imposed under Section 11AC on the ground that the credit had not been utilised by the appellants and provisions of Section 11AC are not at all applicable to a case of wrong availment of the Modvat credit. In my view, this prayer of the learned Counsel deserves to be accepted. The Commissione .....

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..... vailment of Modvat credit which too even had not been utilised. Therefore, the penalty and interest confirmed against the appellants are set aside. The appellants will abide by the statement of the learned counsel made before the Bench that they would reverse the credit within one month from the date of receipt of the copy of this order, failing which they will become liable to pay the interest, a .....

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