https://www.taxtmi.com/caselaws?id=170142 Laminated films used to manufacture pouches for packing supari did not give rise to irregular credit when the packed goods were returned under Rule 16 for re-processing. Once the pouches were used in clearance of the final product, they lost separate identity and could not be artificially segregated from the supari for the purpose of demanding reversal or duty under credit-reversal provisions. The credit taken on the laminated films was lawfully utilised in manufacture, so no irregular availment or utilisation was established. The resulting duty demand was unsustainable and the penalty could not survive. en-us Fri, 19 Nov 2010 00:00:00 +0530 Mon, 18 May 2015 11:52:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=170142 Laminated films used to manufacture pouches for packing supari did not give rise to irregular credit when the packed goods were returned under Rule 16 for re-processing. Once the pouches were used in clearance of the final product, they lost separate identity and could not be artificially segregated from the supari for the purpose of demanding reversal or duty under credit-reversal provisions. The credit taken on the laminated films was lawfully utilised in manufacture, so no irregular availment or utilisation was established. The resulting duty demand was unsustainable and the penalty could not survive. Case-Laws Central Excise Fri, 19 Nov 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=170142