TMI Blog2008 (10) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... nd rejected at assembly stage are inputs issued for manufacture and no credit is liable to be reversed as such inputs are found not suitable and not consumed in further manufacture. In the circumstances, the impugned credit was not liable to be reversed - appeal dismissed - decided against Revenue. - E/719/2006/MAS - 1225/2008 - Dated:- 24-10-2008 - Shri P. Karthikeyan, J. REPRESENTED BY : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants his predecessor had held that no interest and penalty were payable. The said Order-in-Appeal No. 1007/(M-IV) dated 9-9-2003 was sustained by the Tribunal vide Final Order No. 980/2004 dated 10-11-2004. In passing the impugned order, the Commissioner (Appeals) relied on the following case law in addition to the Final Order No. 980/04 dated 10-11-2004. (i) CCE v. Machino Montell (I) Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the provisions of amended Section 11AB. 3. Heard ld. SDR who reiterates the grounds contained in the appeal. 4. Ld. Counsel for the respondents submits copies of a number of case law in all of which inputs issued for production were considered to have been used in relation to manufacture though found unfit for use in the manufacturing process. In Ashok Leyland Ltd. v. CCE, Nagpur [2004 (169 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In both stages, rejections may occur. In the impugned order, the Deputy Commissioner had also found that inputs issued for manufacture are inspected at assembly stage when Line Rejection Note is prepared relating to inputs rejected at the assembly stage. These were scrap. Ld. Counsel submits that a catena of decisions had held that credit was not liable to be reversed when inputs issued for m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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