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2013 (6) TMI 486 - AT - Central ExciseCenvat Credit - denial of CENVAT credit on certain input (printed aluminium foils) which was supplied DLL and received in the appellant’s factory and used in the manufacture of P or P medicaments during the period from December, 2005 to October, 2008. - The demand is on the ground that M/s. DLL did not undertake any manufacturing activity and hence should not have paid duty on printed aluminium foils and consequently credit of such duty was not admissible to the appellant. Held that:- Following the decision in Kwality Biscuits Limited vs. Commisisoner - [2005 (12) TMI 467 - CESTAT, BANGALORE], Indian Oil Corporation Limited vs. Commissioner - [2006 (5) TMI 400 - CESTAT, BANGALORE], Commissioner vs. MDS Switchgear Ltd. - [2008 (8) TMI 37 - SUPREME COURT], Commissioner vs. Hylite Cables - [2007 (2) TMI 409 - CESTAT, AHMEDABAD], etc. The ratio of these decisions is that any duty actually paid (whether or not payable) on input which has been received in the factory of the manufacturer of final product and used in or in relation to manufacture of the final product must be allowed as MODVAT/CENVAT credit to be utilized for payment of duty on the final product. It also emerges from the cited decisions that questions like whether the input is dutiable, whether any element of cost is includable in the assessable value of the input etc. cannot be agitated at the end of manufacturer of the final product. - Demand set aside - decided in favor of assessee.
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