2010 (7) TMI 960

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....e Assessee. Shri D.P. Nagendra Kumar, JCDR, for the Department. ORDER These two appeals are filed against order-in-appeal No. 70/2007 (V-I) C.E., dated 3-8-2007. 2. Appeal No. E/780/2007 is filed by the assessee while appeal No. E/786/2007 is filed by the Revenue. 3. Since both the appeals are directed against the very same order-in-appeal, they are being disposed of by a ....

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....nvat Credit Rules, 2002 read with proviso to Section 11A do not apply in this case. 5. Learned JCDR while justifying the impugned order submits that once Cenvat credit has been taken on the goods which are brought into the factory premises and subsequently they are cleared and when they get destroyed, the reversal of Cenvat credit is justified. As regards the appeal filed by the Revenue, i....

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....are undisputed, it has to be noted that the inputs i.e. glass bottles when they were received they were duty paid. The provisions of Cenvat Credit Rules, 2002/2004 envisages only the use of the inputs in or in relation to the final product. If that be so, the inputs i.e. bottles if they subsequently get broken at the hands of the dealers or at the unit of assessee, there cannot be any demand of re....