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2019 (4) TMI 1141 - CESTAT KOLKATACENVAT credit - denial on the ground that the process of manufacture not taking place - it was alleged by Revenue that the machinery was exported without export being taken place - machinery described as ‘Continuous Automatic Coil to Coil galvanizing Line’ under Chapter 8419 - HELD THAT:- This being complex machinery, the appellant procured various components and sub-systems from different vendors. Upon receipt of such goods in the factory, they availed cenvat credit. It is not in dispute that all the various components/sub-systems were received in the appellant’s factory and subject to various processes. It is not in dispute that the appellant has procured the various inputs components and sub-systems which made up the complex machinery. It is also not in dispute that these goods have been received in the appellant’s factory. Further, there is no dispute that any of the goods so procured are not required in the assembly of the machines cleared for export - there is no reason to take the view that the cenvat credits taken are improper. It is settled position of law that subsequent reversal of Modvat credit is to be considered as non-taking of the credit - It is not in doubt that at the time of clearance of the machinery for export, duty stand paid. Since the duty is paid at the time of clearance of the final product, the credit availed on the inputs stand reversed already - thus, such credits are to be considered as non-taken abinitio. There is no justification for ordering payment of cenvat credit all over again - Appeal allowed - decided in favor of appellant.
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