https://www.taxtmi.com/caselaws?id=1184 Excess quantities of raw materials procured for manufacture do not lose their character as inputs merely because the entire quantity is not consumed in the final product. The test is whether the goods were obtained for use in the manufacturing process, not whether every unit was actually absorbed. Applying that principle, exported copper wire rods remained eligible inputs, and Cenvat credit with consequential rebate could not be denied on the ground of excess procurement. The same parity applied between export under bond and export on rebate claim supported this treatment. The demand and penalty were therefore unsustainable. en-us Mon, 13 Nov 2006 00:00:00 +0530 Mon, 14 Apr 2008 14:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1184 Excess quantities of raw materials procured for manufacture do not lose their character as inputs merely because the entire quantity is not consumed in the final product. The test is whether the goods were obtained for use in the manufacturing process, not whether every unit was actually absorbed. Applying that principle, exported copper wire rods remained eligible inputs, and Cenvat credit with consequential rebate could not be denied on the ground of excess procurement. The same parity applied between export under bond and export on rebate claim supported this treatment. The demand and penalty were therefore unsustainable. Case-Laws Central Excise Mon, 13 Nov 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1184