1999 (6) TMI 184

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....ri Sumit K. Das, JDR, for the Respondent. [Order per : V.K. Agrawal, Member (T)]. - The issue involved in the appeal filed by M/s. Vapi Paper Mills Ltd. is regarding availability of the benefit of Notification No. 225/86-C.E., dated 3-4-1986, as amended. 2. Briefly stated the facts are that the Appellants manufacture paper and paper boards and articles made of paper. They availed of ....

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....nt of duty paid on the inputs so used at the time of clearance of the final goods; that the appellants could not avail the exemption beyond what was prescribed under a Notification. 3. Shri M.P. Devnath, learned Advocate, submitted that there is no stipulation in Notification No. 225/86 that the utilisation of set off should be restricted to the quantum used in the manufacture of the final....

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....he duty paid on the inputs used in or in relation to their manufacture. 4. Shri Sumit K. Das, learned DR reiterated the findings as contained in the impugned order and submitted that the condition of the notification is that the inputs should be "used in or in relation to the manufacture of the final products", and unless and until the inputs are used in or in relation to the manufacture o....

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....ance of the final product, the utilisation of credit has to be co-related to the quantum of inputs used in its manufacture. The Larger Bench, however, pointed out that the quantum of exemption available is thus the excise duty paid on the inputs so used. It is essential for the availment of benefit of notification that the duty paid goods must be used in or in relation to the manufacture of the fi....