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TMI Blog2007 (7) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... l is brought back to the appellant’s factory and consumed for their manufacturing - Held that: - the appellant is eligible to send the inputs on which credit has been availed by them outside the factory and receive back. As long as the dispatch of the inputs and receipt of the same, subsequently, into the factory premises in some form or otherwise, is not in dispute, the Modvat credit on such inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case records and considered the rival contentions. The only short question involved in the appeal is, whether it was necessary that inputs be used within the factory of production, when credit was being availed on them and whether use outside the factory will take them out of the definition of inputs. The matter is squarely covered by the judgment of Hon'ble Supreme Court in C.C.E., Jaipur v. J.K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e referring Bench about the correctness of the decision in C.C.E. v. J.K. Udaipur Udyog Ltd., (supra) was well founded. Having regard to the fact that the Cenvat Rules in effect substitute the Modvat Rules, the decision in Jaypee Rewa Cement would continue to apply. The decision in Commissioner of Central Excise, Jaipur v. J.K. Udaipur Udyog Ltd., holding to the contrary is, in our opinion, not go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to send the inputs on which credit has been availed by them outside the factory and receive back. As long as the dispatch of the inputs and receipt of the same, subsequently, into the factory premises in some form or otherwise, is not in dispute, the Modvat credit on such inputs cannot be denied to the appellant. 6. Accordingly, the impugned order is liable to be set aside and I do so. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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