[Per: Hon. Prafulla C. Pant, J. (Oral)]

This appeal, preferred under Section 35-G of the Central Excise Act, 1944, is directed against the order dated 27.09.2005, passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (hereinafter referred as CESTAT) in Appeal No. E/2782/03 -NB(S), whereby the appeal of the revenue (present appellant) was partly allowed.

2. Heard learned counsel for the parties.

3. Brief facts of the case are that respondent M/s India Glycols Ltd. are manufacturer of Glycol and other industrial chemicals. During the period 1994-95 (upto Feb 1995) they availed Modvat credit to the tune of Rs. 14,73,523/- towards duty paid on various goods claimed to be covered within the ambit of 'capital goods'. A show cause notice dated 08.03.1995, disallowing said credit was issued under Rule 570 of the Central Excise Rules, 1944, by the department to the respondent (assessee), and after considering the reply of 2008(2) The Commissioner of Custom & Central Excise Vs. M/s India Glycols Ltd. 17 the assessee, the adjudicating authority vide its order dated 20th April 1999, allowed the credit to the tune of RS.6,91 ,952.92, whereas credit to the extent of