2007 (2) TMI 531

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..... ants filed this appeal against the impugned order whereby credit of Rs. 50,000/- was disallowed and penalty of Rs. 1,000/- was imposed. 2. The brief facts of the case are that the appellants are engaged in the manufacture of Branded Chewing Tobacco and they are having two units. The appellants were receiving the duty paid inputs in the main unit and availing the credit and the inputs were transf .....

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..... e manufacture of branded chewing tobacco. The first unit is availing the credit in respect of the inputs and the some of the inputs were transferred to the other unit for manufacture of intermediate product i.e. colour tobacco and the whole of the intermediate product was received in the second unit. The contention is that Commissioner (Appeals) has wrongly taken both the units as manufacturing un .....

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..... ontention of revenue is that the appellants had cleared the inputs from one unit to another unit without following the procedure, therefore, the demand is rightly made. 6. In this case, the undisputed facts are that the appellant is the manufacturer of branded chewing tobacco and having two units in the same factory. In one unit the appellants receive the inputs which are transferred to the seco .....

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