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2017 (5) TMI 694 - AT - Central ExciseCENVAT credit - spring steel bars (SS Bars) - denial on the ground that these items are not purchased from authorized dealers as approved by railways and further these items are not used in the manufacture of Elastic Rail Clips to be supplied to railways - Held that: - No evidence of these items having been not received in the premises of the appellant or having been diverted without put into use has been recorded by the lower authorities - The denial of credit cannot be only on the basis that the raw materials are from non-approved sources or similarly placed manufacturer has asserted that these items are not required even for trial or testing - the duty paid raw material if used in relation to manufacture of dutiable final products, credit cannot be denied. Seizure of 36.986 tonnes of raw material SS bars on the ground that these items are not approved raw material for the manufacture of rail clips for the railways - Rule 15 of Cenvat Credit Rules, 2004 - Held that: - the confiscation ordered in the present case is due to non-accountal of these raw materials in the statutory records. If these raw materials are not accounted in the records, the question of availing credit on them does not arise. Accordingly, for non-accounted raw material Rule 15 of Cenvat Credit Rules, 2004 has no application. Raw materials found short in the premises - demand of ₹ 4,84,586/- - Held that: - it is noticed that there is no discussion or finding in the impugned order dated 15/04/2010 by the Commissioner (Appeals). This issue has to be re-examined by the Commissioner (Appeals) for a decision - matter on remand. Appeal allowed in part - part matter on remand - appeal disposed off.
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