Per K.K.Agarwal:

This is a stay applications against demand of duty amounting to Rs. 4,16,748/- When the matter was argued I found that the appellants have made out a prima facie case in their favour both on grounds of limitation as well as merit and I, therefore, took up the matter for final decision by waiving the pre-deposit of the entire amount of duty and penalty.

2. The brief facts of the case are that the appellant is engaged in the manufacture of polythene insulated jelly filled telephone cable falling under Chapter sub-heading 8544 of Central Excise Tariff Act, 1985. They availed Modvat credit on the inputs and capital goods used in the manufacture of its final product for which declarations under Rule 57T were duly filed. A show cause notice dated 18.8.1999 was issued seeking to disallow Modvat credit on twister with control panel, contractor, capacitor, cable test meter, testing for telecom cable, measuring systems availed during the period of August 1994 to December 1995, on the ground that the said goods were not used directly for producing or processing of any finished goods or for bringing about any change in any substance for the manufacture of the finished goods