2016 (4) TMI 446

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.... Indira Sisupal, AC (AR) ORDER PER P.K.CHOUDHARY The appellant filed this appeal against the order of the Commissioner (Appeals) dated 31.08.2005, disallowing modvat credit of Rs. 13,75,483/-, for the period June, 1999 to 2000. 2. The brief facts of the case are that the appellants manufacture goods namely thermoplastic polyurethane called "Desmopan' on job work for M/s Bayer Industrie....

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....f inputs is duly recorded in what is known as Goods Receipt Notes (GRN). As and when the Appellant receives the inputs in question in its own stock, it promptly replaces the quantity taken from the BIL stock, At this stage it does not avail any credit on the inputs received.The revenue issued notice to the appellants for alleged diversion of such inputs without following the procedure under erstwh....

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....t and on job work basis and whether the inputs in question are common ? (2) whether use of such common inputs is prohibited under the erstwhile Rules ? (3) whether invoking of extended period of time limit and imposition of penalty justified ? 4. Heard both sides. 5. The appellant was represented by Mrs. L. Mythili, Advocate, and the respondent was represented by Ms. Indira....

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....ndly, as contended by the Counsel, under the rules there is no requirement of one to one correlation of inputs and output so long as inputs are not used for manufacture of exempted goods. Within the factory, for manufacture, the inputs can be utilised irrespective for whom the goods are manufactured. Removal within factory is not removal for home consumption from factory which alone invites revers....