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2009 (11) TMI 308 - CESTAT, MUMBAICenvat credit- A show-cause notice issued to the appellant in February, 2002, the department objected to such availment of Modvat credit and sought to recover the entire credit taken from January to March 1997 amounting to Rs.36,19723/- under Rule 57-I of the Central Excise Rules, 1944 read with the provision to Section 11A(1) of the Central Excise Act. Penalty equal to duty was proposed under Rule 57-1(4) read with Section 1 Interest on duty was demanded under Rule 57- read with Section 1 These demands were contested. In adjudication of the dispute, the learned Commissioner of Central Excise confirmed the demand of duty. Held that- In other words, the raw material was used in the trial run of the plant. It is settled law that raw materials used in the trial production of the final product are inputs for purpose of Modvat/Cenvat credit. In the result, the impugned order is set aside and this appeal allowed.
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