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TMI Blog2004 (2) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... nts of the motor vehicles. They take credit in respect of duty paid on these inputs. However, during the process of actual assembly, the components are subjected to various checks and on line performance parameters due to which these either get scrapped or are declared as not suitable, not upto the standard and discarded. Such discarded components are cleared as scrap. Some components become unsui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim for each reason code is examined. (1) Reason code 13 - Does not conform to specifications :- It is claimed that the defect is noticed only at the time of assembly. The rejection of claim for credit was on the ground that, no manufacturing process has taken place. So, for this ground for rejection of credit is concerned, I note that, the credit is admissible, as long as the inputs are used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eversal as discussed in the preceding para. 6.(4) Reason code-57 - Faulty Inspection :- These are found unfit during assembly through declared O.K. during the initial inspection. The rejection was on the ground that these were not used or processed but were declared as unfit during assembly. For the reasons enumerated against reason code-13, I hold that credit reversal is not warranted. 7.(5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- There are no specific reasons and the merit cannot be examined. Therefore I hold that, credit reversal has been correctly ordered. 11.In the light of discussions above, the appeal succeeds in respect of credit reversal against reason code Nos. 30, 57, 81, 27 and 53 whereas the appeal fails for the rest of the reason codes. 12.The appeal is accordingly allowed partly and the impugned orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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