TMI Blog2015 (12) TMI 1395X X X X Extracts X X X X X X X X Extracts X X X X ..... ts shall pay an amount equal to the credit taken in respect of the inputs. Further, I find that the dispute in the present case has arisen because of the fact of taking cenvat credit on the disputed inputs used for conversion of the final product. Assuming that no credit has been taken for the activities not amounting to manufacture then there was no scope for payment of any Central Excise Duty on removal of final product. However, since the final product has suffered duty, reversal of credit taken by the Respondent on the inputs will not result in any loss of Revenue to the Government exchequer. - no infirmity in the impugned order - Decided against Revenue. - Excise Appeal No. E/2947/2009-Ex(SM) - - - Dated:- 3-6-2015 - S K Mohanty, Me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner of C. Ex, Rajkot reported in 2008 (224) ELT-66 (Tri. Ahmd), B.R. Knit Fab vs Commissioner of C. Ex reported in 2007 (215) ELT 444 (Tri. Del), PV Sanghvi vs Commissioner of Central Excise, Mumbai-II reported in 2004 (171) ELT 24 (Tri. Mum) to justify his stand that in absence of any manufacturing activity, the credit taken on the inputs are not permissible and as such the same is required to be reversed. 4. Sh. Sudhir Malhotra, the Ld. Advocate appearing for the Respondent submits that the credit taken on the disputed goods have been utilized for clearance of the finished products from the factory and such utilization of credit is in conformity with Rule 3(5) of the Cenvat Credit Rules, and as such, no further credit is required to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture then there was no scope for payment of any Central Excise Duty on removal of final product. However, since the final product has suffered duty, reversal of credit taken by the Respondent on the inputs will not result in any loss of Revenue to the Government exchequer. In this context, I find support from the decisions relied on by the Respondent. The issue decided in the said cases are that the cenvat credit can be taken on the inputs notwithstanding the fact that no final product emerges as a result of manufacturing activity by utilizing the inputs. The decisions cited by the Ld. DR for Revenue are not applicable to the facts of the present case, because the issue in hand has been specifically dealt with by the Commissioner (Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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