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TMI Blog2009 (10) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... .V. Ravindran, J. Shri Rajendran, JDR, for the Appellant. Shri J.V.S. Sundaram, Consultant, for the Respondent. ORDER This appeal is directed against the Order-in-Appeal No. 181/2007, dated 7-9-2007. 2. The relevant, facts that arise for consideration are the respondent herein was availing benefit of Cenvat credit on the inputs used for the manufacture of final product. It was observed by the department that during the period from 1-6-2005 to 30-11-2005, respondent had raised debit notes in respect of inputs rejected during the course of manufacture and collected the material cost from the suppliers. Finding it as irregular, the department issued a show cause notice dated 20-6-2006 to recover the Cenvat credit availed on su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it that the entire case was explained by documentary evidence during the course of hearing before the learned Commissioner (Appeals). It is the submission that the rejection of the inputs is after the said inputs have been gone into manufacture and in the course of assembly by the second and third job workers, if the assembled item is rejected then the full cost of the material was recovered from the supplier who has supplied sub standard goods. It is his submission that in other words the amount is recovered not only for the item added by the final job worker but also the cost of earlier items used in that assembly. He would rely upon the Final Order Nos. 1658-1659/2005 dated 19-9-2005 passed by this Bench on the similar facts and circumst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., citation, 2002 (141) E.L.T. 152, wherein it is held that when the inputs were used in the manufacture of the final products and some of them become waste during the course of manufacture of final products, the credit already taken in respect of such inputs is not to be denied. The ratio of this decision is squarely applicable to the present case. It is a fact that the inputs have suffered duty when the supplier cleared them to the appellant. It. is also a fact the appellant has received the inputs and used them in the manufacture of final products. The fact of the recovery of the cost of the wasted inputs should not be a ground for asking them to reverse the Cenvat credit availed, because it is not the Department s case that the inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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