CCE Vs. COATS VIYELLA INDIA LTD.

JUDGEMENT

(1.) THIS appeal by Revenue is directed against the Order -in -Appeal No. 79/98 -(MDU) dt. 18.6.98, wherein the Ld. Commissioner has held that the respondents/assessee have correctly availed proforma credit/modvat credit in respect of duty paid yarns under the provisions of Rule 56A/57A. As the respondents/assessee had correctly availed the credit of duty and discharged the duty liability on the final product, the demand confirmed and penalty imposed was set aside by the Ld. Commissioner (Appeals), Trichy.

(2.) HEARD Ld. SDR Smt. Bhagya Devi, who reiterates the grounds of appeal.

(3.) SHRI S.S. Thakur, Authorised Representative of the respondent/assessee submits that they removed the goods from one of their factory under Rule 96E and the factory which received the goods has paid the appropriate duty at the time of final clearances. He, however submits that nothing specific is mentioned in the Rules 96E, 56A/57A, which itself forbids them to take modvat credit if they have taken the procedural advantage of Rule 96E of the Rules ibid. He further submits and invites our attention to the detailed findings contained in para -4 of the impugned order wherein the Commissioner (Appeals) has dealt thoroughly the whole concept of Rules 96E, 56A, 57A and 157 of the Rules ibid.