2017 (11) TMI 647

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..... discharge full liability on such inputs which were cleared as such by them. In fact, as claimed by the appellant, they have paid more than the amount of credit availed on the same, as there was marginal increase in the sale value. In such situation, there is no ground for further recovery of any ineligible credit from the appellant - no justification to order for further recovery of credit on thes .....

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..... , 2004. At the time of clearance of their final product they also cleared certain duty paid, credit availed inputs as accessories. Due duty has been paid on the final product, inclusive of value of such accessories. The dispute in the present appeal relates to the eligibility of the appellant to avail credit on certain input items which were not used as accessories but were cleared separately, as .....

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..... gwith RF-Feeder cable, as per the requirement of the clients. However, one of the clients requested only for these accessories and as such they cleared them by reversing the credit availed on such inputs. In fact, they have paid on sale value which is marginally higher than the value on which credit was taken. As such, there is no loss to the Government and also the said procedure is sanctioned by .....

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..... . We note that the inputs received by the appellant were duty paid and they were recognizable as accessories of their final product. Some of them are not cleared as accessories and they cleared as such will not make them ineligible for credit. We note, the appellant did discharge full liability on such inputs which were cleared as such by them. In fact, as claimed by the appellant, they have paid .....

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..... r imposing penalty on the appellant also. We note that the ld. Counsel for the appellant submitted that the clearance of inputs as such is not substantial, subsequent to the impugned proceedings. Most of these inputs are cleared as accessories. 6. In view of the above discussions and analysis, the impugned order is set aside. The appeal is allowed. (Dictated and pronounced in the open Court) .....

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