Per Archana Wadhwa :

After dispensing with the condition of pre-deposit of duty and penalty amount, we take up the appeal itself for disposal.

2. Demand of duty of Rs. 1,45,45,403.81 has been confirmed against the appellants by denying them the benefit of MODVAT Credit in respect of the various capital goods received by them during the period from March, 1994 to September, 1994, on the ground that the same has been availed and utilised by them before the actual installation of the capital goods in their factory. An equivalent amount of personal penalty has been imposed under the provisions of Rule 57U (6).

3. Shri B.N. Chattopadhyay, learned Consultant for the appellants, submits that the period involved in the present appeal is from March, 1994 to September, 1994 and the capital goods in question were installed in the months of June, July and November, 1994 and January, 1995. He, however, submits that the condition debarring the availment of capital goods before installation, was introduced, vide Notification No. 1/96-CE (NT) dated 1.1.96. As such, during the relevant period, there was no provision in the said MODVAT Rules, denying the benefit of MODVAT Credit to the appellants