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2023 (1) TMI 877 - AT - Central ExciseIrregular availment of CENVAT Credit - Inputs (steel) can be treated as any input used for the manufacture of their finished goods i.e. MS Ingot or not - demand of CENVAT Credit alongwith penalty - HELD THAT:- The manufacturer has taken entire credit in respect of inputs used in or in relation to the manufacture of the final products. It is seen that the suppliers are registered Central Excise dealers. The invoices under which the consignment was received by the Appellant is not in dispute. The said invoices clearly indicate duty-paid character of the said goods. It is also undisputed that the said inputs were received in the factory of the Appellants and consumed therein. It is the case of the Revenue that inputs being of prime quality the Appellants could not have used the same for melting. There is no restriction in the CENVAT Credit Rules that the Appellants should not use the prime quality materials for the manufacture of final products. As long as there is no dispute regarding the receipt and consumption of the inputs, dutypaid character thereof, the benefit of the CENVAT Credit cannot be denied to the Appellant. The facts of the present case are squarely covered by the decision of the Tribunal in the case of GUPTA METAL INDUSTRIES VERSUS COMMISSIONER OF CENTRAL EXCISE, DELHI [2004 (9) TMI 218 - CESTAT, NEW DELHI] and BHAGWATI STEEL CAST LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, NASIK [2007 (10) TMI 57 - CESTAT, MUMBAI] where it was held that Credit cannot be denied as there is no restriction in Cenvat Rules to use prime quality material in manufacture of final product - In the present case there is no dispute as regards the payment made by the Appellant to the supplier and therefore the benefit of CENVAT Credit cannot be denied. Appeal allowed.
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