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TMI Blog2015 (9) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... is a dispute with regard to the quantum of loss, the questions may have to be left open. But, in cases where the quantum of manufacturing loss claimed at 5% by the appellant is never disputed by the Department from the stage of issue of the show cause notice upto the stage of the order of the Tribunal, the interpretation given to Rule 9A cannot be accepted. - appellant was right in making a claim for CENVAT credit, with reference to the total quantity and the value of the inputs that went into the making of the fabric. - Decided in favour of assessee. - Civil Miscellaneous Appeal No. 2350 of 2006 & M. P. No. 1 of 2006 - - - Dated:- 13-8-2015 - V. Ramasubramanian And K. B. K. Vasuki, JJ. For the Appellant : Mr. S. Jaikumar For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CENVAT credit, to which, they were not entitled. However, the amount of penalty was reduced from ₹ 7,06,433/- to ₹ 70,643/-. The appellant then filed an appeal before the first respondent. The appeal was disposed of by the Tribunal by an order dated 6.2.2006 sustaining the orders in principle, but setting aside the quantum of duty and penalty and remitting the matter back to the Original Authority for re-quantifying the duty and penalty. On the question, in relation to which, the first respondent remanded the matter back to the Original Authority, the appellant has no difficulties. But, on the point that was sustained by the Tribunal in principle, the appellant has come up with the above appeal. 6. On 10.8.2006, this Court f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er or second stage dealer of goods falling under Chapter 50 to 63 of the First Schedule to the Tariff Act, shall be entitled to avail credit equal to the duty paid on inputs of such finished product, lying in stock or in process or contained in finished products lying in stock as on 31st day of March 2003 upon making a written declaration of the description, quantity and value of the stock of inputs (whether lying in stock or in process or contained in finished products lying in stock) and subject to availability of the document evidencing actual payment of duty thereon. 9. What the appellant did was to make a claim for CENVAT credit in respect of the total quantity and value of goods that had gone into the making of fabric. Under Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y entitled to CENVAT credit or not ? 12. Keeping the above in mind, if we get back to the scope of Rule 9A, it is seen that there are three expressions used. They are (i) inputs of such finished product (ii) lying in stock or in process and (iii) contained in finished product. 13. To say that what is contained in finished product is only a quantity of all the inputs of the same weight as that of the finished product would presuppose that all manufacturing processes would never have an inherent loss in the process of manufacture. The expression 'inputs of such finished product' contained in finished products' cannot be looked at theoretically with its semantics. It has to be understood in the context of what a manu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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