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TMI Blog2007 (10) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... nal products in which the inputs was used and the quantum of duty paid on the final products is not less than the credit taken on the inputs – demand set aside on account of revenue neutrality - E/3141/2006 - A/1383/2007-WZB/C-IV/(SMB), - Dated:- 9-10-2007 - Shri K.K. Agarwal, Member (T) Shri C. Lama, JDR, for the Appellant, Shri A. V. Naik, Advocate, for the Respondent. [Order] - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s required under the Board's Circular No. 795/28/2004-C.Ex continued to pay duty on availed Cenvat credit wrongly on the inputs received on or after 9-7-2004 and used the Cenvat credit for payment of Central Excise duty on the clearances of fabrics manufactured by their job workers. They were therefore issued a show cause notice alleging that they have contravened provision of Rule 3 of the Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by them during the period 9-7-2004 to 30-11-2004. The show cause notice was adjudicated by the Deputy Commissioner, who confirmed the duty amounting to Rs. 1,57,106/- along with interest and imposed a penalty of Rs. 25,000/- under Rule 13(2)/Rule 15(2) of the Cenvat Credit Rules, 2002/2004. On appeal, this order was set aside by the Commissioner (Appeals) who held that since the appellant have pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvat credit as they have not undertaken any manufacturing activity nor did have any manufacturing premises but the facts remains that they have paid duty on the final products in which the inputs was used and the quantum of duty paid on the final products is not less than the credit taken on the inputs. The whole exercise therefore becomes revenue neutral and therefore no purpose will be served by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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