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TMI Blog2018 (11) TMI 734X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants have utilized the cenvat credit available in the records for this purpose. There is no infirmity in such payment - also it is held that the inputs having been used for the intended purpose of manufacture and clearance of dutiable final products, the credit of such payment is again available to the appellants. Appeal allowed - decided in favor of appellant. - Appeal Nos. E/530/2010 & E/575/2010 - FO/76903-76904/2018 - Dated:- 12-11-2018 - Shri P.K. Choudhary, Judicial Member And Shri V. Padmanabhan, Member (Technical) Shri Sunil Kadam, General Manager(Legal) Shri Rahul Patil, Manager (Accounts) for the Appellant Shri D. Haldar, AC(AR) for the Respondent. ORDER Per Bench : Both these appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final product in the factory. The Revenue was of the view that the assessee will not be entitled to discharge the amount required to be paid under Rule 6 of the above Rules by making use of the accumulated cenvat credit. Further, they were of the view that the assessee also will not be entitled to avail the credit of the duty so paid, since such debit is not one of the documents based on which cenvat credit can be availed as specified in Rule 9 of the Cenvat Credit Rules, 2004. On these lines show cause notice dated 03.09.2009 was issued to the assessee directing them to repay the cenvat credit wrongly utilized for discharging the obligations under Rule 6 of the Cenvat Credit Rules, 2004. Further, they were directed to repay the wrongly ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et aside. 5. Ld. DR submitted that the assessee has contravened two provisons; (i) The assessee is not entitled to utilise the cenvat credit available in the books for payment of duty for procurement of raw-materials. Hence, he submitted that the credit availed for such purpose is required to be repaid. (ii) He also contended that the assessee will be entitled to the cenvat credit of duty paid on the raw-materials only if such amounts are paid in cash along with interest to satisfy the requirement of Rule 6. Since such payments have not been made in cash, the assessee will not be entitled to take such credit. (iii) Finally he submitted that the adjudicating authority has erred in ordering payment of cenvat credit only once inste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above decision of the Tribunal, we find the present impugned order is not sustainable. Regarding the analysis of Rule 3 of Cenvat Credit Rules by Lower Authorities, we find reliance has been placed by the Revenue on Rule 3(4)(b), which states that an amount equal to Cenvat credit taken on inputs, such inputs are 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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