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M/s. Shree Rajasthan Syntex Ltd., Shri S.K. Bhandari And Shri V.K. Ladia Versus CCE, Jaipur-II

2016 (3) TMI 200 - CESTAT NEW DELHI

Cenvat credit for discharging duty on the inputs procured without payment of duty - revenue contended that, the duty on the fibre procured without payment of duty, but not used for the intended purpose, cannot be discharged for availing cenvat credit and also such duty discharged cannot be further availed as a credit by the appellant. - Held that:- Regarding the analysis of Rule 3 of Cenvat Credit Rules by Lower Authorities, we find reliance has been placed by the Revenue on Rule 3(4)(b), which .....

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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 inf .....

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L) AND SHRI B. RAVICHANDRAN, MEMBER (TECHNICAL) For the Petitioner : Shri B. L. Narsimhan, Advocate For the Respondent : Shri G.R. Singh, DR ORDER PER B. RAVICHANDRAN: These three appeals are directed against order dated 12.09.2006 of the Commissioner (Appeals), Jaipur-II. The main appellants are engaged in the manufacture of M.M. Blended yarn liable to central excise duty. They were clearing the final products to domestic market as well as for export. They were procuring fibre for production of .....

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led as credit and used for discharging duty on final products. The department raised objection on both the points viz. the duty on the fibre procured without payment of duty, but not used for the intended purpose, cannot be discharged for availing cenvat credit and also such duty discharged cannot be further availed as a credit by the appellant. The proceedings initiated against the appellant concluded by the order dated 29.03.2006. The Original Authority confirmed the demand of ₹ 23,87,30 .....

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d for intended purpose, they have to discharge duty on the same. Since it is their input for further manufacture, they have paid the duty using the credit already available with them and availed the amount against as a credit. The admitted facts of the case are that the raw materials (fibre) have been used for dutiable final product and as such, the duty discharged on the fibre is eligible for credit. He further relied on the decision of the Tribunal in another case of the appellant vide Final O .....

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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 under Rule 3 of the above Rules. Reliance was placed on analysis by Original Authority in paras 76 to 81. 4. Heard both the sides .....

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