2007 (1) TMI 452

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....e Appellant. Shri S.N. Prasad, SDR, for the Respondent. [Order per : Jyoti Balasundaram, Vice President]. - In this case, Modvat credit of Rs. 1,60,75,217/- has been disallowed on the ground that the credit was wrongly taken on inputs as the final product of the appellants was not a result of manufacture. Penalty of an amount equal to duty has also been imposed upon the appellants. 2.&....

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....05 (69) RLT 786 (CESTAT-Ban.). 3. On the other hand, ld. SDR contends that merely because duty was paid on certain products credit of the duty paid cannot be held to be admissible for the reason that credit can be availed only on inputs used in or in relation to manufacture of final product, and in this case since the process is not one of manufacture, Modvat credit cannot be extended to t....