2005 (4) TMI 222

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....led this appeal against the order-in-appeal passed by the Commissioner (Appeals). In this case the appellants are engaged in the manufacture of aluminium products. They are also availing the benefit of Modvat credit in respect of inputs. The appellant availed the benefit of Modvat credit in respect of the inputs used in the manufacture of purified water which is exempt. Such purified water is capt....

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....e of Hi-Line Pens Pvt. Ltd. v. CCE, Delhi reported in 2003 (158) E.L.T. 168. 4. The contention of the Revenue is that the appellant availed the credit in respect of inputs used in the manufacture of purified water and some portion of the quantity of the purified water was cleared without payment of duty, therefore, the demand was rightly made under Rule 57CC. The contention is also that the cre....

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....Line Pens Pvt. Ltd. is as under :- "2. We have perused the records and heard both sides. With regard to the common inputs, the submission of the appellant is that the total amount of Modvat credit was only Rs. 5 lakhs and even though a part of it was used in the manufacture of dutiable goods, they have already reversed the entire credit of Rs. 5 lakhs to give a quietus to the dispute. During th....

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....h this view of the learned SDR. The requirement in the Modvat rules is the reversal of credit taken in excess of what is due. The time of reversal is not material for this. The legal position on this issue remains settled by the decision of the Tribunal in the aforesaid cases. In these circumstances, we are not able to find any merit in respect of demand on account of taking Modvat credit on commo....