2004 (2) TMI 166

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....y bring several components in their factory for eventual use as fitments/ components of the motor vehicles. They take credit in respect of duty paid on these inputs. However, during the process of actual assembly, the components are subjected to various checks and on line performance parameters due to which these either get scrapped or are declared as not suitable, not upto the standard and discar....

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.... failed and hence the instant appeal to the Tribunal. 3.Heard, both sides. The claim for each reason code is examined. (1) Reason code 13 - Does not conform to specifications :- It is claimed that the defect is noticed only at the time of assembly. The rejection of claim for credit was on the ground that, no manufacturing process has taken place. So, for this ground for rejection of credi....

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.... The rejection was on the same ground as for the reason code-30. I uphold the credit reversal as discussed in the preceding para. 6.(4) Reason code-57 - Faulty Inspection :- These are found unfit during assembly through declared O.K. during the initial inspection. The rejection was on the ground that these were not used or processed but were declared as unfit during assembly. For the reas....