2005 (1) TMI 279

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..... uring MMF. They removed various consignments of processed fabrics for export under bond, and did not take deemed credit under Notification No. 29/96 as the appellant was under a bona fide impression that deemed credit was available only when the processed fabrics were removed from the factory on actual payment of Excise duties. They however took credit entry of Rs. 46,97,771/- on 12-12-1998 in the .....

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..... roducts and imposed penalty and denied the Credit availed. The Commissioner (Appeals) upheld the order as regards denial of Credit on the ground that deemed credit taken after a lapse of 17 months was not legal und proper and set aside the penalty as the appellant had not utilised this credit. Hence this appeal. 4. After hearing both sides and considering the issue it is found that there is no b .....

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..... lowed in the case of Rule 56 in such cases of bona fide error or mistake of understanding of the law, and that position has been accepted in a catenae of decisions nothing contrary having been shown to deny the credit, the credit is to be allowed after setting aside the orders impugned. 6. In view of the finding the order is set aside and appeal allowed. (Pronounced in Court) - - TaxTMI - T .....

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