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2016 (4) TMI 446 - CESTAT CHENNAIDemand of duty and imposition of penalty - Inputs supplied to the job worker and those procured on their own account for manufacture have been inter utilised whenever required - Held that:- inputs meant for manufacture on job work cannot be utilised for manufacture on their own account and vice versa. Such removal according to revenue would be construed as diversion of inputs or removal outside the factory for home consumption inviting reversal of credit or payment of duty but there is no provision in the Act or Rules or in Cenvat Credit Rules treating such inter utilization of inputs as prohibited. Also, Modvat/Cenvat Credit Rules permits utilization of inputs for any final product of the manufacturer. One to one co-relation - Revenue contended that there is no one to one co-relation of input and output - Held that:- under the rules there is no requirement of one to one correlation of inputs and output so long as inputs are not used for manufacture of exempted goods. Within the factory, for manufacture, the inputs can be utilised irrespective for whom the goods are manufactured. Removal within factory is not removal for home consumption from factory which alone invites reversal of credit or payment of duty. Therefore, the impugned order is set aside and also demand and penalty is set aside. - Decided in favour of appellant with consequential relief
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