ORDER
S.S. Kang, Vice-President
1. The appellant filed these appeals against the adjudication order passed by the Commissioner (Appeals). In this case benefit of Modvat credit in respect of Partially Oriented Yarn is denied to the appellant on the ground that it is used in the manufacture of Texturised Yarn and the appellants were treated as an independent texturiser. The contention of the appellant is that they were getting Partially Oriented Yarn and sending the same to various job workers for the manufacture of texturised yarn and on receipt of the texturised yarn, the same is used in the manufacture of Zipper Rolls which were cleared on payment of duty. The contention is that Revenue is treated the appellant as an independent texturiser and denying the benefit of Modvat credit in respect of the Partially Oriented Yarn. The submission of the appellant is that texturised yarn is not cleared as such but the same is used in the Zipper Rolls, therefore, there is no bar for taking credit in respect of Partially Oriented Yarn. The appellant relied upon the decision of the Tribunal in the case of Olympic Petro Products v. CCE reported in 2004 (170) E.L.T. 490.
2. The contention of the Revenue is that as per the provision of Cenvat Rules independent texturiser who manufactured texturised yarn are not entitled for the benefit of credit in respect of inputs. Therefore, the demand is rightly barred by time.
3. We find that in this case the appellant is not clearing the texturised yarn nor they are texturising Partially Oriented Yarn. The duty paid Partially Oriented Yarn is cleared to the job workers and after texturising the same was received by the appellant for further use in the manufacture of Zipper Rolls which were cleared from payment of duty. In this case this factual position is not disputed by the Revenue. In these circumstances it cannot be said that the appellants are an independent texturiser or cleared the texturised yarn at concessional rate of duty. The Tribunal in the case of Olympic Petro Products (supra) allowed the credit in respect of the same product Partially Oriented Yarn which is used in the manufacture of Zipper Rolls. In view of the above decision, the impugned order is set aside and the appeals are allowed.