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2014 (9) TMI 658 - AT - Central ExciseCENVAT Credit - Activity amount to manufacture of not - Cutting and slitting of coils - Held that:- Appellants are not merely undertaking the activity of cutting and slitting of coils, but they are doing the activity of putting of layer of plastic for improving drawability of material, and applying inter-leaving paper for protection of the material so as to be fit for end use application. - process undertaken by the party is not mere cutting and slitting of coil but various process, which are ancillary to completion of manufacturing process, are undertaken which is "precision in nature" in completion of the end product as a distinct product. - Various processes as explained supra carried out is not for the purpose to cut the big coils, into small one for trade purpose; that the intent here is to customize specifically against OEM's requirements pertaining to specific end usage, without this specific customization, the OEM cannot go ahead in the manufacturing of various products. - Decided in favor of assessee. Period of limitation - Held that:- Appellant has taken registration in 2006 by declaring their activity to the department and they were granted the registration. They are regularly filing their Central Excise Returns showing availment of Cenvat credit on capital goods, inputs and input services. They are also showing the fact that they are paying duty by utilising the Cenvat credit as well as through PLA on the finished product as well as the scrap arising during the course of manufacture. Therefore, the extended period of limitation cannot be invoked. Accordingly, on limitation the appellants are having a good case. Further, we find that for the period which is within limitation, the appellant has discharged duty through PLA also as well as by availing the Cenvat credit, which means they have paid more duty than the Cenvat credit availed. In these circumstances, relying on the decision of Ajinkya Ent. (2012 (7) TMI 141 - BOMBAY HIGH COURT), we hold that appellants are not liable to pay duty, as the duty paid by them on the finished goods shall be treated as reversal of the Cenvat credit during the said period. - Decided in favour of assessee.
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