CCE Vs. KRISHNA SYNTHETICS

JUDGEMENT

(1.) In this appeal, which has been filed by the Revenue against the impugned Order -in -Appeal dated 25.9.2003 passed by the Commissioner (Appeals), the issue relates to the denial of the benefit of Notification No. 5/98 -CE dated 2.6.98, as amended, providing concessional duty for Dyed Textured Yarn produced out of duty paid Textured Yarn, on which no credit was availed under Rule 57A or 57B or 57Q of the Central Excise Rules. Both the authorities have allowed the benefit of this notification to the respondents and dropped the duty demand against them.

(2.) Ld. JDR has contended that the respondents availed the Modvat credit on the Filament Yarn used in the manufacture of Synthetic Filament Textured Yarn. Therefore, they could not discharge the concessional rate of duty from the Modvat Credit Accounts maintained in RG -23A Part -II register at the time of clearance of the Dyed Textured Yarn. The impugned order, therefore, deserves to be set aside.

(3.) On the other hand, Ld. Counsel has reiterated the correctness of the impugned order.