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2010 (10) TMI 471 - AT - Central ExciseManufacture - Imported rectifiers - The hi-pot test, programming, load sharing current sharing voltage test and burn-in test - in the absence of any technical write up as to how the rectifiers, after undergoing the processes as indicated herein, had resulted in a better rectifiers - Hence, unable to accept the assessee’s contention that the processes indicated herein , would amount to process which is incidental or ancillary for the completion of the manufactured product - Since the definition of ‘manufacture’ in Section 2(f) is not satisfied, it has to be concluded that there is no manufacture in the assessee’s premises. Cenvat credit - The processes carried out by the assessee would not amount to manufacture, the corollary is that the appellant had cleared the rectifiers on which the credit was availed as such - Hence, the appellant has to reverse the actual amount of CENVAT credit availed on such rectifiers. Penalty - Appellant had been filing monthly returns regularly and was intimating the Revenue about the activities carried on, as per his bona fide belief that the rectifiers, would amount to manufacture, has been discharging the Central Excise duty on final products cleared from his factory - This act of the appellants cannot be considered as mis-statement or suppression of facts - If the Revenue authorities were entertaining any doubt about the manufacturing activity, they could have verified, inspected, as the regular monthly returns were filed with them - It is not justified in imposing equivalent amount of penalty under Rule 15(2) of the CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. Interest - The appellant is liable to pay interest on the amount, which has been utilized by him for discharge of duty liability.
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