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TMI Blog2016 (4) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... odvat/Cenvat Credit Rules permits utilization of inputs for any final product of the manufacturer. One to one co-relation - Revenue contended that there is no one to one co-relation of input and output - Held that:- under the rules there is no requirement of one to one correlation of inputs and output so long as inputs are not used for manufacture of exempted goods. Within the factory, for manufacture, the inputs can be utilised irrespective for whom the goods are manufactured. Removal within factory is not removal for home consumption from factory which alone invites reversal of credit or payment of duty. Therefore, the impugned order is set aside and also demand and penalty is set aside. - Decided in favour of appellant with conse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant receives the inputs in question in its own stock, it promptly replaces the quantity taken from the BIL stock, At this stage it does not avail any credit on the inputs received.The revenue issued notice to the appellants for alleged diversion of such inputs without following the procedure under erstwhile rule 57AC or 57F (3) and without payment of duty or paying an amount equal to credit taken on such diverted inputs. Penalty was also sought to be imposed under erstwhile Rule 173Q. After the order of adjudication passed by the Additional Commissioner confirming the demand proposed in the show cause notice and imposing penalty, an appeal was filed which was also rejected leading to the filing of an appeal before this Tribunal which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y final product of the manufacturer. 6. Secondly, as contended by the Counsel, under the rules there is no requirement of one to one correlation of inputs and output so long as inputs are not used for manufacture of exempted goods. Within the factory, for manufacture, the inputs can be utilised irrespective for whom the goods are manufactured. Removal within factory is not removal for home consumption from factory which alone invites reversal of credit or payment of duty. 7. With regard to the inter utilisation of inputs, for job work and for their own use, the appellant s submission has not been countered with more forceful submissions and better material to prove to the contrary. With regard to the second submission, that there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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