2016 (3) TMI 1107

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....r per: Sulekha Beevi, C.S.] The appellants are engaged in manufacture of excisable goods and are availing facility of CENVAT credit on inputs and capital goods.  On verification of records, it was found that during the period from May 2011 to December 2011, the appellants wrongly availed credit of duty of Rs. 22,77,073/- on inputs, which were not used for the process of manufacture of excisa....

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....3/- on the credit reversed by the appellant. 2. On behalf of the appellant, the learned counsel Sri Nitesh submitted that the inputs were used for the residential colony of the factory as provided under Rule 3(5) of the CENVAT Credit Rules.  The inputs which are used directly or indirectly in or in relation to manufacture of final products are procured by appellants and are entitled to avail....

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....ubmitted that appellants reversed the credit before utilization and that therefore they are not liable to pay any interest.  The learned counsel relied upon the judgments laid in CCE&ST, Bangalore Vs. Bill Forge P. Ltd. [2012(279) ELT 209 (Kar.)] and CCE, Madurai Vs. Strategic Engineering (P) Ltd. [2014(310) ELT 509 (Mad.)]. 3. Against this, the learned AR supported the findings in the impug....