Per Gowri Shankar :

Each of the two respondents to these appeals was engaged in processing of bleached fabrics received in its factory. After such processing the fabrics were removed without payment of duty in terms of Notification 47/94 by following the chapter X procedure to persons, manufacturing unspecified textile articles out this. These articles were exported. Each of the respondents had taken modvat credit on the duty paid on the fabrics. Three notices were issued to M/s. Omkar Textile Mills and one to M/s. Alok Synthetics, proposing to recover modvat credit on the ground that it is only the credit of duty paid on partially process fabrics which can be taken and not that on bleached fabrics. Adjudicating on the notices the Assistant Commissioner held in two of his orders, which are subject matter of Appeals E/3395/99 and E/3396/99 that credit could not be denied on the ground that the bleached fabrics were not inputs. In one of the other two orders he suggests although he does not clearly specify them. He proceeded to deny credit on the ground that finished products had been removed without payment of duty under chapter X procedure. He also imposed penalty on each of th