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2024 (2) TMI 1018 - AT - Central ExciseDenial of CENVAT Credit - process amounting to manufacture or not - goods received from Unit-I (and cleared to Unit-II) required manufacturing activity or not - whether the demand raised alleging that the credit availed by the appellant is ineligible for the reason that there is no manufacturing process undertaken by the appellant on goods received from Unit I and cleared by them is sustainable or not? - HELD THAT:- It is an undisputed fact that the appellant has cleared all goods from unit 2 by payment of duty. When the department has collected duty on the finished products, the credit availed on the inputs cannot be denied alleging that the activity does not amount to manufacture. This issue is settled by the decisions in the case of Ajinkya Enterprises [2012 (7) TMI 141 - BOMBAY HIGH COURT] wherein the Hon’ble High Court of Bombay held CENVAT credit availed need not be reversed even if the activity does not amount to manufacture. In the case of M/s. R K Packaging Vs. CCE, Mumbai [2019 (3) TMI 1500 - CESTAT MUMBAI], the issue considered was whether the credit availed has to be reversed when the activity is alleged to be not manufacture. The demand was set aside by the Tribunal following the decision of the Hon’ble High Court of Bombay in Ajinkya Enterprises. The demand cannot sustain and requires to be set aside. The impugned order is set aside - Appeal allowed.
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