2007 (5) TMI 478

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.... Shri V.K. Agarwal, DR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. - Heard both sides and perused the record. 2. The appellant is a manufacturer of automobiles and received several inputs for the said manufacture. One such item is sheet metal parts. Duty credit is available in regard to all the inputs used in the manufacture of automobiles. So the appellant had taken....

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....clearance. 5. The contention of the learned Counsel for the appellant is that demand is contrary to the specific provisions of Rule 3(3)(b) of the Cenvat Credit Rules. It is being pointed out by the learned Counsel that that rule specifically states that an amount equal to credit taken on inputs is to be paid if inputs are removed as such or after being partially processed. 6. The ....

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....e dispute here is as to how Cenvat Credit Rules are to be operated. Rule 3(3)(b) (as amended) specifically states "Cenvat credit may be utilized for payment of an amount equal to the Cenvat Credit taken on inputs if such inputs are removed as such or after being partially processed." This provision covers both utilization of credit and the measure of credit to be reversed. Thus, reversal of credit....