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2015 (11) TMI 1783 - AT - Central ExciseCENVAT Credit - input - Liquid Absorbent Polymers (CABLOC) through imported sources - it was observed that the said input is of substandard quality - HELD THAT:- On plane reading of Rule 14 of the Cenvat Credit Rules, 2004, it reveals that in the eventuality, when the credit has been taken or utilized wrongly, the said statutory provision can be invoked for recovery of the Cenvat amount - In the present case, the issue is not in dispute that input goods covered under the Bill of Entry have not been received in the factory of the appellant. It is also not in dispute and there is no specific allegation by the Department that the goods have not been utilized for the manufacture of the final product. Since as a commercial practice and as per the terms of agreement entered into between the appellant and its supplier, the debit note was issued for compensating the appellant towards supply of sub-standard goods, Cenvat benefit cannot be denied to the appellant, in view of the fact no such provisions exist in the Cenvat statute for doing so. Credit allowed - appeal allowed - decided in favor of appellant.
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