1. Facts giving rise to these two appeals are, in brief, as under :—

1.1 The appellants are manufacturers of yarn. During period from Sept., 2009 to May, 2010, they received capital goods in respect of which they took Cenvat credit. During this period appellants were availing the exemption Notification No. 29/2004-C.E., dated 9-7-2004 as well as Notification No. 30/2004-C.E., dated 9-7-2004. Notification No. 29/2004-C.E., prescribes a concessional rate of duty of 4% for yarn without any condition and as such the appellant could avail input duty Cenvat credit. This exemption Notification was being availed in respect of the yarn manufactured and cleared for export. The yarn meant for export was being cleared on payment of duty at the rate of 4% adv. and was being exported under rebate claim. Notification No. 30/2004-C.E., provides for full duty exemption to the items specified thereunder subject to condition that no input duty credit is availed. This exemption was being availed in respect of clearances of yarn intended for domestic consumption. However during the period of dispute, the appellant had not taken any input duty credit, either in respect of goods cleared at nil rate o