2009 (11) TMI 463

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..... the basis that the appellants had removed the inputs without reversing the credit availed. Held that - the inputs received were used for repair of the machinery installed in the factory of the appellants. It is not the revenue's case that the appellants had availed inadmissible credit. Find that the inputs were not removed outside the factory. In the circumstances, rule 3(5) could not be validly .....

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..... pre-deposit of these dues for hearing the appeals. 2. After hearing both sides for sometime, I find that the appeals themselves can be disposed of at this stage without a further hearing in the matter. Accordingly the appeals are taken up for the disposal. During the material period, the appellants had received welding electrodes and availed input credit under rule 3 of Cenvat Credit Rules, 2004 .....

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..... , that is, in relation to manufacture of finished goods. Therefore, the impugned demands of credit and penalty could not be sustained. 4. The learned JDR submits that since the appellants had recovered the cost of the inputs from the contractor, they were not entitled to avail the Cenvat credit. 5. I have perused the records and considered the rival submissions. The rule invoked for demand is .....

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