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2011 (4) TMI 956 - KARNATAKA HIGH COURTCenvat credit -Tribunal holding that the assessee could not be denied the Cenvat credit, when admittedly he has paid the excise duty - assessee has a factory at New Delhi where they manufacture semi-finished ayurvedic medicines. His understanding was the said products are not excisable. Therefore, the assessee cleared those goods to their sister unit at Bangalore without payment of duty. The Excise Department was of the view that it is excisable to tax and when it was demanded by the Excise officials, the assessee has deposited the said amount. After depositing the said amount, the assessee took cenvat credit - manufacturer has to pay tax at the point of clearance and then collect it from his customers. Once, he pays the tax, he is entitled to avail the credit and subsequently utilize the same. At any rate, for the fault of the department, the assessee cannot be made to suffer, appeal are answered in favour of the assessee and against the revenue. No merit in this appeal and accordingly, it is dismissed
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