TMI Blog2015 (1) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... to reverse any Cenvat credit. In these circumstances, following the precedent decision of this Tribunal in the case of Bajaj Electrical Ltd. (2009 (6) TMI 781 - CESTAT, MUMBAI), I hold that the appellant is entitled to take Cenvat credit and are not required to reverse Cenvat credit on account of excess consumption of input - Decided in favour of assessee. - Appeal No. E/441/10 - Mum - - - Dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r that the appellant has imposed penalty on the job worker to maintain efficiency and accuracy of the product. Revenue is of the view that the excess use of inputs and recovery of penalty from the job worker is required to be reversed as same has not been used in manufacture of final product. Therefore, show-cause notice was issued. Both the lower authorities confirmed the demand against the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , I find the issue is that whether the CENVAT credit availed on purportedly higher utilization of inputs can be denied on the ground that inputs can be denied on the ground that inputs were not utilized in or in relation to the manufacture of the final product. In this case it was explained by the appellants that it is not a case of non-utilisation of input in the final product but it is a case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts may receive goods to the tune of 94.5% or so. It is the accumulated shortages, which are ultimately taken note of by the appellants, and as a part of the contract between the appellant and job worker, job charges are reduced to that effect, for which purpose the debit notes have been raised. This fact, by itself, does not give any right to the Revenue to demand duty on such shortages, when admi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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