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2017 (10) TMI 204 - AT - Central ExciseCENVAT credit - denial of credit on the ground that no manufacturing activity was carried out by the appellants on the finished products and the appellant also not carried out any process specific under Rule 16 - Held that: - From Rule 16, it is seen that the assesee shall be allowed the Cenvat Credit in respect of duty paid on the goods received in the factory for the purpose of re-made, refined, re-conditioned or for any other reasons. As per sub-rule (2) of Rule 16, it is provided that when such duty paid goods is cleared by the assesee under two situations (i) the activity undertaken by the appellant does not amount to manufacture (ii) the activity undertaken by the appellant is amounting to manufacture. In both the above situation, the appellant can take Cenvat Credit on the duty paid goods - In the facts of the present case, the appellants have brought the duty paid goods from various vendors and the same were repacked as per the requirements of export and goods were exported, even though the activity was not amount to manufacture, they have discharged excise duty. Therefore, in our view, the appellants have complied with the provisions of Rule 16 (1) and (2) - appeal allowed - decided in favor of appellant.
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