TMI Blog2012 (11) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacturing activity. It is relevant to note that the Board in its Circular dated 7th September 2001 had only held that the activity of cutting/slitting of HR/CR coils in to sheets or strips constitutes manufacture. Admittedly, the assessee had carried on additional activities such as pickling and oiling on the decoiled HR/CR coils, which is a complex technical process involving huge investment in plant and machinery. Since these additional activities were not considered by the Board in its Circular dated 7th September 2001, the withdrawal of the said Circular cannot be a ground to hold that the activity carried on by the assessee did not constitute manufacturing activity - in favour of assessee. - E/447/11-Mum. - - - Dated:- 18-10-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Government may issue an order for non-reversal of such credit in past cases. Circular further clarifies that if the assessee has already paid duty, and in a situation where there is no manufacture as held by the Courts, the assessee is at liberty to approach the Central Government for issue of appropriate notification for regularization of the Cenvat credit availed. In pursuance to the Circular, the applicant made a representation vide letter dt.29.1.2011 to the Central Board of Excise Customs for regularization of credit. However the board communicated that the appellants request cannot be considered. The appellant relied upon the decision of Hon ble Bombay High Court in the case of Commissioner of Central Excise Pune-III Vs. Ajinkya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, then, obviously no duty was payable on clearance of the decoiled HR/CR coils and consequently the assessee could not taken credit of duty paid on HR/CR coils. Merely because, the assessee had paid duty though not payable, it cannot be said that the credit of input duty has been correctly taken. It is contended that the assessee had applied to the Board seeking regularization of the credit which was wrongly taken, but the Board has rejected the request made by the assessee. In these circumstances, it is submitted that the CESTAT ought not to have interfered with the order passed by the authorities below. We see no merit in the above contentions. As rightly contended by the representative of the assessee appearing in person, till 1st Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of pickling does not amount to manufacture. Therefore, during the relevant period, that is, during the period from 2nd March 2005 to 31st December 2005, it could not be said that the issue was settled and that the assessee paid duty on decoiled HR/CR coils knowing fully well that the same were not manufactured goods. If duty on decoiled HR/CR coils was paid bona fide, then availing credit of duty paid on HR/CR coils cannot be faulted. Apart from the above, in the present case, the assessment on decoiled HR/CR coils cleared from the factory of the assessee on payment of duty has neither been reversed nor it is held that the assessee is entitled to refund of duty paid at the time of clearing the decoiled HR/CR coils. In these circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
