2014 (6) TMI 62

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....s submitted that the Applicants are having two Units, one, at Garia, Kolkata which caters to the needs for domestic consumption and another Unit at Falta Economic Zone meant exclusively for export. The Applicants are engaged in the manufacture of lock nuts falling under Chapter Headings 73 & 76 of CETA, 1985. The ld. Consultant submits that they are procuring H.R.Coils with a standard width of 1260 mm from M/s SAIL. He submits that the said coils are sent to their job workers for slitting into different sizes ranging from 86 mm to 280 mm. He submits that they availed cenvat credit on the amount of duty shown in the respective invoices issued by M/s SAIL, after receiving the slitted coils from the job workers. However, they reversed the cred....

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....re marked as 'Falta'. It is his submission that the Applicant knew before hand that the coils which were slitted for Falta Unit, cannot be used in or in relation to the manufacture of finished goods at their Garia Unit. Therefore, the condition laid down under Rule 3 (1) of Cenvat Credit Rules, 2004 and the definition of 'inputs' as prescribed under Rule 2 (k) of Cenvat Credit Rules, 2004, are not satisfied. He submits that the procedure laid down under the Cenvat Credit Rules, 2004, ought to be followed by the Assessee to be eligible to claim cenvat credit on input and use the input credit in the manner as specified under various Rules of the said Cenvat Credit Rules, 2004. In the present case, the Applicant has not followed the procedure ....