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2015 (1) TMI 1101 - AT - Central ExciseBenefit of CENVAT Credit - Whether the appellant is eligible to avail cenvat credit of central excise duty paid on P.u. foam blocks which are inputs for their final product which is described by them as P.U. foam sheet - Held that:- appellant is procuring P.U. foam blocks which are covered under Chapter Heading No. 3920 or 3921, on which central excise duty has been discharged by the manufacturer. We also note that the products as got manufactured by the appellant were classified by them under Chapter Heading No. 3926. After classifying the said product under Chapter Heading 3926, the appellant had discharged central excise duty which has been accepted by the Revenue. In the entire proceedings before us, we find that the classification described by the appellant as to the products which are falling under Chapter Heading 3926, remains the same and is not disturbed by the adjudicating authority or the first appellate authority. This itself is an indicator that the original input, P.U. foam block, has undergone change and is now other than the inputs which were procured by the appellant. When the appellant is discharging central excise duty on the products which they consider as manufactured products and the Revenue authorities also having accepted the central excise duty, in our considered view, the appellant eligible, rightfully to avail cenvat credit of the central excise duty paid on the inputs. This is the settled law. - the judgment of the Hon'ble High Court of Gujarat in the case of Creative Enterprises (2008 (7) TMI 311 - GUJARAT HIGH COURT) is directly on the issue and it was held in favour of the assessee inasmuch as the ratio stated is when an assessee considers the activity as amounting to manufacture, then the question of availing cenvat credit cannot be denied by holding that there is no manufacture.- impugned order is unsustainable and liable to be set aside - Following decision of CCE, Pune-III vs. Ajinkya Enterprises [2012 (7) TMI 141 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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