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TMI Blog2016 (3) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... e duty. They were clearing the final products to domestic market as well as for export. They were procuring fibre for production of yarn for export availing notification no.43/2001-CE (NT) dated 26.06.2001. Some portion of such non-duty paid procurement could not be used for the intended purpose and hence, the appellants discharged the duty on the said fibre. They utilized cenvat credit available in their books to discharge such duty. They have used the fibre for further manufacture and clearance of final products on payment of duty. The duty paid on the fibre (as they could not be used for intended purposes) was again availed as credit and used for discharging duty on final products. The department raised objection on both the points viz. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts can discharge duty using cenvat credit and the said payment can again be availed as a credit for discharging duty on the final products. 3. Ld. AR supports the findings of the Original Authority as well as Appellate Authority and submitted that duty on fibre procured without payment of duty cannot be discharged using the cenvat credit account. He drew our attention to the findings of the Original Authority on the analysis of Rule 3 of Cenvat Credit Rules, which stipulate the usage of credit availed for discharging various types of duties. It is the case of the Revenue that the input procured on concession without payment of duty which is not used for intended purpose, has to discharge duty and such duty is not one of the duties listed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty and on failure of use of the same for the intended purpose, duty has to be discharged. Here, the duty has to be discharged by the appellant as a recipient of goods. In case if they procured the said inputs on payment of duty (without availing the exemption) then they would have discharged the duty and availed credit of the same based on duty paid document of the seller. Since the payment of duty on the inputs has to be discharged by appellant in the present case, in the absence of any specific bar, the appellants have utilized the cenvat credit available in the records for this purpose. We find no infirmity in such payment. The inputs having been used for the intended purpose of manufacture and clearance of dutiable final products, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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