2005 (3) TMI 320

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..... by the Commissioner (Appeals) whereby the benefit of Modvat credit of Rs. 29,667/- on account of Modvat credit on inputs treated as Store Rejection and Rs. 62,056/- on account of Modvat credit inputs treated as Line Rejection has been allowed. 2. The contention of the Revenue is that as the inputs are not used in the final product, therefore, the credit is not available. 3. The contention of the .....

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..... puts are issued for manufacture and used in the process of manufacturing and during this process these are declared defective. Therefore, the credit cannot be denied on such inputs. The appeal in respect of Store Rejection is allowed and in respect of Line Rejection is dismissed. However, taking into facts and the case of the respondents, are not liable for any penal action. The appeal is disposed .....

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