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2016 (3) TMI 775 - CESTAT NEW DELHIDisallowance of Cenvat Credit on bright bars used as inputs for manufacture of motor vehicles parts - Held that:- Interestingly, although the Apex Court in its judgment dated 20.09.1994 in CCE, Chandigarh Vs. Vee Kayan Industries (1994 (9) TMI 97 - SUPREME COURT OF INDIA ) had held that the processing of round bars into Bright bars would not amount to manufacture, the Department by Trade Notice No. 18/2003 dated 14/08/2003 had clarified that the process of making bright bars from wire rods amounts to manufacture. Duty was being collected upon bright bars and credit was being availed on such goods. A further trade notice dated 16/06/2004 was issued in clarification to trade notice No. 18/2003. It is discussed by the Commissioner (Appeals) that the issue was contentious and involved interpretation and therefore protective demands were issued during that time. It is seen that the cases were kept pending in the call books after issuance of show cause notice. Thereafter the matter has been adjudicated and order passed. This goes to show that the Department itself was under much confusion as to whether excise duty is to be collected or not on bright bars. See decision in Light Lift Industries vs. CCE, Delhi-IV-2010 (2009 (11) TMI 796 - CESTAT NEW DELHI) wherein it has been held that the credit is admissible on bright bars. Further, when inputs is received by the appellant and used in or in relation to manufacture of final product and payment of duty is evidenced by the invoices, credit cannot be denied. The question whether the input is the result of a process of manufacture is irrelevant. What is relevant is whether duty has been paid or not on such input. - Decided in favour of assessee
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