https://www.taxtmi.com/caselaws?id=238488 CENVAT credit on leftover MS scrap received from a principal manufacturer was treated as admissible because the department had not undertaken any proper inquiry into the material's nature or actual use. The record showed that the principal manufacturer regarded the goods as scrap and the assessee as leftover material from job work, so denial of credit could not rest on mere assumption or disbelief. The notification condition requiring return of material was also not violated on these facts, as the purchase of leftover scrap satisfied the arrangement between the parties. The demand and interest were therefore not sustainable. en-us Mon, 14 Oct 2013 00:00:00 +0530 Fri, 25 Apr 2014 18:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=238488 CENVAT credit on leftover MS scrap received from a principal manufacturer was treated as admissible because the department had not undertaken any proper inquiry into the material's nature or actual use. The record showed that the principal manufacturer regarded the goods as scrap and the assessee as leftover material from job work, so denial of credit could not rest on mere assumption or disbelief. The notification condition requiring return of material was also not violated on these facts, as the purchase of leftover scrap satisfied the arrangement between the parties. The demand and interest were therefore not sustainable. Case-Laws Central Excise Mon, 14 Oct 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=238488