9911796707
TMI Blog2007 (2) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. [Order]. - Heard both the sides. The appellants 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistered with the Revenue as two units of manufacturers for the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s had suppressed the material facts, is sustainable. 5. The contention 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 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of final product, in these circumstances, as the inputs on which credit has been availed was used in the second unit in the same factory for the manufacture of excisable goods, the demand is not sustainable and hence set aside. The appeal is allowed and consequently the penalty is also set aside.
(Order dictated and pronounced in the open Court on 8-2-07) X X X X Extracts X X X X X X X X Extracts X X X X
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