9911796707
TMI Blog2015 (3) TMI 1100X X X X Extracts X X X X X X X X Extracts X X X X ..... Since the quantity of the final products was not up to the mark, the manufacturing activities stopped totally in August, 2000. Since then, there has been no manufacture and the plant is lying closed. The appellant, however, have been selling the finished products and the last sale was in April,2008. The department initiated proceedings by issue of five show cause notices for demand of cenvat credit totalling Rs. 1,27,95,483 for the period from November, 1997 to March, 1999 on the ground that no goods have been manufactured and cleared during that time by using the inputs in respect of which the cenvat credit has been taken. Earlier the Commissioner vide order-in-original dated 31.3.2004 had dropped the cenvat credit demand of Rs. 97,01,793 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 1,27,95,483/- along with interest and has imposed penalty of equal amount on the appellant against which this appeal has been filed along with stay application. 2. Heard both the sides in respect of stay application. 3. Shri P.K. Mittal, Advocate, ld. Counsel for the appellant, pleaded that the inputs in respect of which the cenvat credit had been taken, had been taken up for manufacture and some of such inputs are in semi-finished state and the remaining quantity of inputs were converted into final product which is still lying in stock, that the appellant used the cenvat credit availed inputs in the manufacture of finished goods, out of which, 1172 MTs of PTA had been cleared on payment of duty, that this fact is not denied by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod September, 1999 to August, 2000, a total of 1172 MT. of PTA was manufactured out of which 865.90 MTs of PTA was cleared on payment of duty. Subsequent to this, there have been clearances of finished products till 2008 and in April, 2008, there was stock of 34.37 MTS of PTA. From this, it is, prima facie, evident that the inputs in respect of which the cenvat credit had been taken, have been used for manufacture of finished products and just because some of the inputs in form of work in progress and some of the finished products are still lying in stock, the cenvat credit cannot be denied as cenvat credit is admissible in respect of inputs used in or in relation to manufacture of some final products. The cenvat credit would be deniable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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