COMMISSIONER, CENTRAL EXCISE Vs. PEE JAY INTERNATIONAL LIMITED

JUDGEMENT

(1.) The present Appeal is filed by Revenue challenging the Order dated 01.03.2005 (Annexure A-2) passed by Customs, Excise and Service Tax Appellate Tribunal, New Delhi (hereinafter referred to as ?the Tribunal?) whereby the Tribunal has allowed Appeal of the respondent-assessee. The Revenue has raised following questions of Law:

(2.) The Respondent is engaged in the manufacture of Woolen Yarn, Acrylic Yarn and Woolen Blended Yarn falling under Chapter Heading 51 of the Central Excise Tariff Act as well as man-made Yarn falling under Chapter Heading 55 of the Central Excise Tariff Act. The assessee manufactured blended Woolen Yarn by using Polyester, Polyester Filament Yarn as input and it was purchased from different manufacturers and dealers.

(3.) The Revenue issued a Show Cause Notice alleging that during January? 1997 to March? 2000, the Respondent did not actually receive and utilize Polyester Filament Yarn whereas credit was availed. The Adjudicating Authority, i.e. the Commissioner of Central Excise, Ludhiana disallowed credit of Rs. 44,09,228/- and imposed equal amount of penalty under Rule 57(i) read with Rule 173Q of the Rules.