2003 (6) TMI 368

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.... for the Respondent. [Order]. -  Revenue filed this appeal against the Order-in-appeal passed by the Commissioner (Appeals) whereby the Commissioner (Appeals) allowed the credit on the inputs used in the final product which is washed away in the flood. 2. Heard both sides. 3. The brief facts of the case that the respondents are engaged in the manufacture of chemicals and....

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....e in respect of the denial of credit on the inputs used in the final product which is washed away floods. 5. The contention of the Revenue is that as per Rule 57C of the Central Excise Rules, 1944, no credit of duty paid on inputs used in the manufacture of final product, can be allowed if the final product is exempted from the whole of the duty or is chargeable to nil rate of duty. In the....

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....nsformed into an intermediate product arising in the manufacture of final product, it would not be correct to say that in that situation, the input has not been used in relation to the manufacture of final product. In the present case, the input was intended to be used in the manufacture of final product and used in relation to such manufacture. The inputs contained in the semi-finished goods, the....