2013 (11) TMI 1111

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..... pplicants are manufacturers of spindle tape and accessories, belt and accessories, belt adhesive application, flat belt joining press, nylon tubing and loom components. It was seen that during the period 1.2.2008 to 3.10.2009 and 11.11.2009 to 30.9.2010, the applicant had imported V belts and locally procured pulleys and took Cenvat credit on such items though such items had nothing to do with the .....

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..... plicant submits that they had brought these goods into their factory because they had testing facilities for V Belts and Pulleys and they were doing such testing on these products. After testing, these goods were sent to a job worker of the company who manufactured the goods and disposed of manufactured product as per Central Excise Rules. His contention is that when the material which has come in .....

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..... f CENVAT Credit Rules, 2004. It is not proper to take Cenvat credit on any traded items which is coming into the factory and debiting corresponding amount when goods are removed from the factory. He submits that since credit was taken and utilized during the time when the goods were lying within factory of the applicant, it is case of unauthorized utilization of ineligible credit on goods which ca .....

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