2007 (4) TMI 410

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....uhag, DR, for the Respondent. [Order]. -  The applicant challenges the order of the Commissioner (Appeals) dated 21-11-2006 upholding the order of the adjudicating authority by which Cenvat credit of Rs. 3,97,174/- was disallowed. The applicant also challenges the reduced penalty imposed by the Appellate Authority. 2. The learned Counsel for the applicant has pointed out from th....

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.... and the Adjudicating Authorities have correctly held that, credit on these inputs, which were not used in the manufacture of the final product, was not allowable. 4. The wordings of Explanation 2 to Rule 2(k) of the Cenvat Credit Rules of 2004, are unambiguous. The word 'input' would include, as provided therein, goods used in the manufacture of capital goods which are further used in the....

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.... carried from the definition of 'capital goods' to the definition of 'inputs' in the context of the said Explanation 2. 5. As regards Clean Flo, the learned Counsel has referred to the decision of the Hon'ble High Court of Punjab & Haryana in CCE, Chandigarh v. J.C.T. Limited reported as 2003 (151) E.L.T. 508 (P&H), in which it was held that, "Clean Flo'' was to be regarded as input used i....