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2018 (3) TMI 323 - AT - Central ExciseCENVAT credit - allegation against the appellant is that they failed to reverse the credit of duty on the inputs used in the trial production for which the demand SCN issued - Held that: - The reality of manufacture makes trial run a necessity and there is no provision for deniability of credit of inputs used for production process in CENVAT Credit Rules, 2004. The dutiability, or otherwise, of the waste product does not, in any way, attract restrictions on availment of CENVAT credit of the inputs used therein. The recovery of cost of inputs from the foreign customers through debit notes does not alter the eligibility to take credit of tax paid on tax liability that has been duly discharged. The disallowance of CENVAT credit in the impugned order is without any basis in law - appeal allowed - decided in favor of appellant.
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