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2013 (1) TMI 358 - KARNATAKA HIGH COURTDemand of duty on the CENVAT credit - Whether the Tribunal is justified in holding that there is a possibility of using of inputs inspite of respondents statement when the respondent contends that the same is unfit for use? - Held that:- Respondent contested that the goods were damaged during transit and as a result of which the inputs could not be used for manufacturing the final products. If it is so, the Tribunal did not consider the vital aspect of the matter on account of the damaged causes to the inputs, it cannot be used for final product and when the respondent has claimed the insurance, we are at a loss to understand how the claim of the appellant can be considered as premature. When the demand is in respect of the period from January 1997 to November 2000, when the appeal is disposed of in the year 2005, at least the Tribunal was required to examine, whether the respondent has used inputs for the manufacture of final products and duty has been paid by the respondent to the appellant and without ascertaining this factual aspect, the Tribunal has erroneously passed an order. In the circumstances, the matter is required to be reconsidered by the Tribunal afresh in accordance with law. Accordingly, this appeal is allowed and all the contentions are left open.
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