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2014 (12) TMI 619 - CGOVT - Central ExciseDenial of rebate claim - original authority rejected the entire rebate claim on the ground that process undertaken by the applicant does not amount to manufacture - CBEC Circular No.927/12/2010-Cx dated 24.6.10 - Retrospective application - Held that:- demand of cenvat credit availed cannot sustain for period prior to 24.6.10 i.e. before issuance of the said circular dated 24.6.10. He also confirmed-the demand of cenvat credit availed for period subsequent to date 24.6.10. There is nothing on record nor in the written submission dated 2.9.14 of the department that said-order dated 31.8.12 has been stayed by any higher appellate forum. As such, the legal position as on date is that the process undertaken by the applicant prior to 24.6.10 amounts to manufacture and as such cenvat credit availed by them prior to 24.6.10 was proper and the circular is not applicable retrospectively. Apex Court in H.M.BagsManufacturer Vs Collector of Central Excise [1997 (7) TMI 119 - SUPREME COURT OF INDIA] and various subsequent judgements has clearly stipulated that Board's circular can have only prospective effect which is evidently the law of the land. Hence, Government finds that rejection of the rebate claims by the original authority on the sole ground of issue of ‘amounts to manufacture by applying the Boards circular-retrospectively-i.e. prior to 24.6.10 cannot be held sustainable and hence, liable to be set aside. - Decided in favour of assessee.
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