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2017 (11) TMI 595 - AT - Central ExciseCENVAT credit - job-work - returned inputs - Department's allegation is that in a number of cases the material returned to the customers was not the one which had been received from customers, but was from the stocks of Cenvat credit taken inputs of the appellants - Whether the appellants on return back of such material to the supplier cleared their own raw materials on which Cenvat credit was availed by them and as to whether Cenvat credit involved on such self owned material was liable to be reversed by the appellants under the provisions of Rule 3(4) of Cenvat Credit Rules, 2002/2004? Held that: - it is evident that in some cases after receipt of the material on job-work basis, the finished goods could not be produced in the given time span. The materials received on job-work were returned to them (Principal). There is no dispute that such unprocessed inputs were returned, and/or was not received by the respective suppliers - even if the material which had been returned, though maybe from a different lot, by the goods being homogenous, in my view, it does not make any difference. In respect of the material received on job work, which could not be returned and would be used by the appellant for manufacture on their own account, the Cenvat credit would become available, in any case the situation is revenue neutral - except the stock statement of inputs for 14/10/2004, there is no other evidence to show that on each occasion the unprocessed inputs return to the customers were out of the stock of Cenvatable inputs and not inputs which had been received from the customers on job-work. The impugned order is also vitiated for denial of opportunity for cross-examination although prayed by the appellants. Appeal allowed - decided in favor of appellant.
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