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TMI Blog2015 (10) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... t be used in or in relation to the manufacture of the final products. The appellant reversed credit during the investigation. Admittedly the input is rejected materials and it cannot be used in the manufacture products. - demand of duty of ₹ 18,035.00/- alongwith interest is a upheld. The demand of duty in respect of the other issues and penalty are set-aside - Decided partly in favour of assessee. - Appeal No. E/413/2008, Application No. E/Extn/14740/2014 - Final Order No. A/10423/2015-WZB/AHD - Dated:- 10-2-2015 - P. K. Das, Member (J),J. For the Appellant : Shri Dhaval Shah, Adv For the Respondent : Shri G Jha, AR ORDER Per: P K Das: The facts of case, in brief, are that the appellant were engaged in the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant submits that the rejected raw-materials were lying in the factory and therefore, there is no reason of reversal of credit as held by the Tribunal in the case of Bharat Heavy Electricals Ltd. vs. C.C.E., Banglore 2002 (50) RLT (CEGAT-Ban.). He further submits that the denial of Cenvat Credit of ₹ 56,035.00/- on GTA service is contrary to the decision of the Hon'ble Andhra Pradesh High Court in the case of the Commissioner of Customs and Central Excise, Hydrabad-II vs. Grey Gold Cements ltd. 2014 (34) STR 809 (A.P). Regarding the last issue, the Learned Advocate submits that the Commissioner (Appeals) proceeded on the basis that no process was undertaken by the appellant, whereas, the finding of the Adjudicating Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvat Credit Rules, 2004 provides that the manufacture is eligible to avail Cenvat Credit on duty paid inputs used in or in relation to the manufacture of final products. In the present case, there is no dispute that the inputs were rejected material and cannot be used in or in relation to the manufacture of the final products. The appellant reversed credit during the investigation. So, there is no merit in the submission of the learned advocate on this issue. The case law relied upon by the Learned Advocate is not applicable in the present case. In the case of Bharat Heavy Electricity Ltd. (supra), the goods were written off in the books of accounts and therefore, the department presumed that the inputs may not be used in the manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) of Central Excise Rules, 2002 have wide amplitude, in the present case, the appellant cleared the goods after process as observed by the Adjudicating Authority and therefore, the decision of the Division Bench of the Tribunal In the case of Apollo Tyres Ltd. (Supra) would apply for hearing. 7. The Learned Authorised Representative for the Revenue submits that the appellant had not contested the demands on merit before the Commissioner (Appeals). I find that the second and last issue is covered by the decision of the Tribunal at the Hon'ble High Court and there is no dispute on the facts of the case. In my considered view, when the issue is settled in favour of the appellants that they are not liable pay duty, then, the demand can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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