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TMI Blog2016 (3) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... e removed as such or after being partially processed. As admitted by the lower authorities, in the present case, first of all, there is no clearance of inputs as such and hence the above said provisions have no application. The admitted fact is that the inputs have been procured without payment of duty and on failure of use of the same for the intended purpose, duty has to be discharged. Here, the duty has to be discharged by the appellant as a recipient of goods. In case if they procured the said inputs on payment of duty (without availing the exemption) then they would have discharged the duty and availed credit of the same based on duty paid document of the seller. Since the payment of duty on the inputs has to be discharged by appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. They have used the fibre for further manufacture and clearance of final products on payment of duty. The duty paid on the fibre (as they could not be used for intended purposes) was again availed as credit and used for discharging duty on final products. The department raised objection on both the points viz. the duty on the fibre procured without payment of duty, but not used for the intended purpose, cannot be discharged for availing cenvat credit and also such duty discharged cannot be further availed as a credit by the appellant. The proceedings initiated against the appellant concluded by the order dated 29.03.2006. The Original Authority confirmed the demand of ₹ 23,87,303/- and he disallowed the cenvat credit and ordered fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis of Rule 3 of Cenvat Credit Rules, which stipulate the usage of credit availed for discharging various types of duties. It is the case of the Revenue that the input procured on concession without payment of duty which is not used for intended purpose, has to discharge duty and such duty is not one of the duties listed under Rule 3 of the above Rules. Reliance was placed on analysis by Original Authority in paras 76 to 81. 4. Heard both the sides and examined the appeal records. 5. We find that the only question for decision is whether or not the appellants are correct in using the cenvat credit for discharging duty on the inputs procured without payment of duty, but later, could not be used for the intended purpose. We note that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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