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2014 (7) TMI 523 - AT - Central ExciseBenefit of CENVAT credit - Revenue contends that activity of de-coiling the sheets, cutting to length, shearing and other activity like de-greasing, cleaning, etc. did not amount to manufacture and amounted to removal of inputs as such and accordingly the CENVAT credit availed was proposed to be disallowed - Held that:- There is no loss of revenue as the appellant had cleared the goods with value addition which have resulted in payment of excess duty to the tune of ₹ 50,40,102. The next ground taken is that the allegation in the show cause notice is self-contradictory as on the one hand it is alleged that the activity of de-coiling, cutting, slitting, cleaning, etc. does not amount to manufacture whereas on the other hand, in para 17 of the show cause notice it is observed that the average value of the inputs in question i.e., GP coils was ₹ 35,779/- PMT and slit coils was ₹ 38,609/- PMT whereas the average assessable value of the GP coils sheets and cut to length sheets was ₹ 38,015/- PMT and ₹ 38,763/- PMT respectively. It is further observed that the appellant cleared the goods in question after value addition on the inputs and also observed that the credit of input was availed at rate less than the duty rate at which the final products were cleared by the appellant. Thus, on the facts of the case, this itself proves that the inputs having subjected to processing resulting in value addition as the same have been cleared at appropriate rate of duty which is higher and it cannot be said that the inputs are cleared as such. There is definitely some value addition involved as the goods in question have been removed at a higher rate of duty resulting into additional duty to the exchequer of ₹ 50.40 lakhs. Further, we find that the facts and circumstances of the present case are squarely covered by the ruling of the Hon'ble Bombay High Court in the case of Ajinkya Enterprises (2012 (7) TMI 141 - BOMBAY HIGH COURT) - Decided in favour of assessee.
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