https://www.taxtmi.com/caselaws?id=120766 Cenvat credit was held to be a conditional concession, available only when inputs are used in the manufacture of final products. Because the inputs were cleared as free replacement parts without being so used, the statutory condition attached to the credit was not satisfied and the credit amount became payable by reversal or repayment. The challenge that Rule 57F(3) was ultra vires the Central Excise Act, 1944 was rejected, and the argument that the value of the free replacement parts had already been included in the product price was also not accepted. The demand and penalty were sustained. en-us Wed, 10 Jan 2007 00:00:00 +0530 Tue, 24 Jul 2012 11:47:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=120766 Cenvat credit was held to be a conditional concession, available only when inputs are used in the manufacture of final products. Because the inputs were cleared as free replacement parts without being so used, the statutory condition attached to the credit was not satisfied and the credit amount became payable by reversal or repayment. The challenge that Rule 57F(3) was ultra vires the Central Excise Act, 1944 was rejected, and the argument that the value of the free replacement parts had already been included in the product price was also not accepted. The demand and penalty were sustained. Case-Laws Central Excise Wed, 10 Jan 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=120766