2007 (11) TMI 110

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....in-appeal No. AKD (27) 26/07, dated 15-2-2007.  2. Considered the submissions made by both sides and perused the records. The Revenue is in appeal against the said order on the ground that the ld. Commissioner (Appeals) has erred in appreciating the fact. The relevant facts are that the respondent herein purchased some inputs from manufacturer. The said inputs were found to be of inferior ....

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....IL to the suppliers on account of quality difference etc. The law is well-settled in this regard. Whatever duty is paid on the goods received in the factory is admissible for Modvat credit, unless the supplier factory gets any part of it as refund. In the present case, there is nothing on record, nor is it he point made by the department that the suppliers did get refund of any part of the duty wh....

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....cases where refund is allowed to the manufacturer of inputs and not in a case like the present one where only less value has been paid by JLMIL without any alteration of the duty paid by the manufacturer of inputs, Departments insistence on the said Rule and instruction is misplaced. (4)  As elaborated in Para 6(1) above, there is no question of any fraud to the Revenue or any administrati....