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TMI Blog2017 (3) TMI 1079X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by Commissioner (Appeals) who disallowed the credit on MS Plates, MS sheets, Welding Rods, Steel wire, Wire mesh and MS strapping etc. 2. A show cause notice was issued to the appellants for the period 10/2010 to 8/2015 proposing to disallow the credit availed on MS angles, MS bars, MS sheets, tubes, welding rods etc. to the tune of ₹ 52,99,500/- under the category of inputs. After adjudication, the Commissioner disallowed the credit to the tune of ₹ 26,17,748/- and confirmed the said demand alongwith interest and imposed penalty of ₹ 15,60,880/-. Hence this appeal. 3. On behalf of the appellant, Ld. Counsel, Shri M. Rajendran appeared and argued. The appellant is engaged in the manufacture of bulk drugs. MS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turer of the final product; or (ii) Any goods including accessories, cleared along with final product, the value of which is included in the value of the final product and goods used for providing free warranty for final products; or (iii) all goods used for generation of electricity or steam for captive use or (iv) all goods used for providing any output service; but excludes- (A) light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol (B) Any goods used for- (a) Construction or execution of works contract of a building or a civil structure or a part thereof; or (b) Laying of foundation or making of structures for support of capital goods, Except for the provisions of servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d welding electrodes. Again, department has no case that appellant has diverted such items procured by them. They have disclosed the credit availed and the details in the ER-1 returns and credit statement filed by them. Alongwith Chartered Engineer s certificate, work sheets were also furnished. In para 17 of the impugned order, it is observed by the Commissioner that the SS sheet cannot be used for manufacture of bulk drugs (finished products) and therefore they do not come under the definition of inputs. In fact, the definition of inputs mean all goods used by manufacturer in the factory. It need not be directly used in the manufacture of final product. In para 14 of impugned order, the admissibility of welding rods, MS strappings etc. is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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