2004 (4) TMI 375

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..... for the Respondent. [Order]. -  In this appeal filed by the Revenue against the impugned order-in-appeal, the issue relates to the denial of the Modvat credit to the respondents on G.I. Sheets and Silicon Spray, besides imposition of penalty on them equal to the amount of the Modvat credit wrongly availed by them. 2. I have heard both sides and gone through the record. The respondent .....

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..... referring to the definition of 'Inputs' in Rule 57AA(d), which indicates that the 'inputs' include all goods used in or in relation to the manufacture of the final product whether directly or indirectly and whether contained in the final products or not. But, in my view, no capital out of this definition of the 'inputs' can be made by the respondents. The G.I. Sheets had not been used undisputedly .....

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..... e order of the Commissioner (Appeals) in this regard is  upheld. 5. Regarding the imposition of penalty for availing the wrongful Modvat credit in respect of the G.I. Sheets, the prayer of the Revenue cannot be allowed for the simple reason that in the show cause notice the imposition of penalty was never proposed. The Revenue cannot be permitted to travel beyond the scope of the show c .....

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