2006 (1) TMI 516

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.... K.S. Bhat, SDR, for the Respondent. [Order per : T.K. Jayaraman, Member (T)]. - The appellants avail Cenvat credit on inputs used in the manufacture of final products. With effect from 1-3-2003, as per the provisions of Rule 3(3) of Cenvat Credit Rules, 2002, when the inputs on which Cenvat credit has been taken or removed as such from the factory, the manufacturer of the final products sha....

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....f Rs. 3,976/- was short paid due to the same reason. He has demanded both the amounts in his order. Further he has demanded interest under Section 11AB also. The Commissioner (Appeals) in the impugned Order-in-Appeal No. 16/2005, dated 23-2-2005 has upheld the order of the Original authority. The appellants have strongly challenged the findings of the lower authorities. 2. Shri M.S. Sriniv....

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.... equal to the duty paid on the inputs, he has reversed more than what is necessary on clearance of inputs as such. If more duty is paid, we fail to understand as to how the demand of duty on the excess duty paid can stand the test of reason and law. What is the motive in reversing the excess credit. The Commissioner (Appeals) has given the following reasons :- "It only appears that the appellan....