9911796707
TMI Blog2016 (12) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... ore Steel & Iron Mills Ltd v. Commissioner of Central Excise Indore [2002 (2) TMI 255 - CEGAT, NEW DELHI] which has held that credit taken on fuel does not have to be reversed - the appellant has complied with the conditions of non-availment of CENVAT credit and is, therefore, eligible for the exemption - appeal allowed - decided in favor of appellant. - APPEAL No: E/1318/2005 - ORDER No.A/94001/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grey fabric to the market but paid duty on clearances to its own processing house. It was alleged that credit of duty had been availed on cotton yarn and on other inputs such as fuels, lubricants, sizing material, packing material etc. M/s Hindoostan Spinning Weaving Mills Ltd have reversed the credit taken on yarn at the time of clearance of the finished goods and reversed other credits, except ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcept lubricant and fuel, are also reversed regularly but holds that this is not acceptable as such reversals are effected in lumpsum at the end of the month and thus not in accordance with the decision of the Hon ble Supreme Court in Chandrapur Magnets Wires Pvt Ltd v. Collector of Central Excise, Nagpur [1996 (81) ELT 3 (SC)]. Further, it was held that failure to reverse credit taken on furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear that as long as the credit is not retained for utilization at a later stage the condition of non-availment of credit has been complied with. Accordingly, we hold that the finding against the appellant merely on the ground of lumpsum reversals at the end of each month is not sustainable. 5. Fuel and lubricants are consumables; their use does not bear any proportion with the quantum of prod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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