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2012 (4) TMI 505 - AT - Central ExciseCENVAT Credit - Printing of bags - Held that:- The case of the department is that the process undertaken by the appellant unit i.e. printing of polypropylene woven bags does not amount to manufacture and hence they are not eligible for Cenvat credit. However, Rule 3(5) of the Cenvat Credit Rules, 2004 provides that when the Cenvat credit availed inputs are cleared as such, an amount equal to the Cenvat credit required to be paid. Then even if the department’s stand that process undertaken by the appellant does not amount to manufacture is accepted, this would have to be treated as clearance of Cenvat credit availed input as such. Since the appellant have paid duty on the printed P.P. bags the Cenvat credit availed would have to be treated as reversed. In view of this, impugned order demanding the Cenvat credit along with interest and imposed penalty on the appellant is set aside - Decided in favour of assessee.
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