- (1.)Whether the CESTAT while allowing the appeals and restoring the matter for fresh adjudication was justified in directing the appellants to deposit a part of the duty confirmed by the Orders-in-Original, is the question raised in these two appeals. The appeals are admitted on the above question and taken up for hearing by consent of both the parties.
(2.)The relevant facts are that both the appellants claim to have received duty paid grey fabrics as inputs and used the same in the manufacture of processed fabrics which was ultimately exported. The appellants took credit of the duty paid on grey fabrics on the basis of the invoices issued by various parties. By show cause notices, the appellants were called upon to show cause as to why the credit taken on the basis of the invoices issued by some of the firms, who had supplied grey fabrics should not be disallowed on the ground that the said firms were fake or non-existent firms. The appellants opposed the show cause notice.
(3.)By Order-in-Original, the Commissioner disallowed the credit to the extent specified therein and confirmed the duty demand to the extent the credit was disallowed with interest and penalty. On appeal, the Tribunal by the impugned order directed the appellants to deposit part of the demand confirmed by the adjudicating authority. Challenging the aforesaid order, the appellants have filed the above two appeals.