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2013 (2) TMI 31 - HC - Central ExciseRemoval of Input - CENVAT credit under rule 57A – Rule 57F - Assessee is engaged in the manufacturing activity of “P.D. Pumps” - Department argue that assessee did not carry out any manufacturing activity on the PD pumps purchased exclusively from its sister concern before clearance - therefore, required to reverse such credit – Assessee contended that they had carried out manufacturing activity on the pump sets purchased by it and on the value addition had also paid excise duty – Assessee paid duty when they cleared final output and such duty was more than the credit taken Held that:- Following the decision in case of RICO AUTO INDUSTRIES LTD. (2006 (12) TMI 326 - CESTAT, NEW DELHI) that the rule contemplated removal of inputs in respect of which a credit of duty had been allowed where they are not used in relation to manufacture of final products with a condition that on their removal, the excise duty shall be paid to the tune of the credit availed under Rule 57A for such inputs. Even if were to be held that no process was undertaken on these goods, then obviously there was no liability to petitioner pay excise duty on the footing that these goods were manufactured by the appellant, because if they were already brought as inputs from other manufacturer and no further process was undertaken, they would obviously be not liable for payment of excise duty on the ground that manufacturing process was undertaken. Therefore, in either event, no duty liability arose on the part of the appellant In favour of assessee
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