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2015 (2) TMI 790 - AT - Central ExciseCENVAT Credit - processing of membrane/disc imported for water filter system - processing repacking after adding some features and sold the same as membrane - manufacturing activity or not - appellant was under the bona fide belief that the activity undertaken by them amounted to manufacture and, therefore, they discharged excise duty liability on the membrane so cleared. They also availed CENVAT Credit of the CVD and SAD paid on the imported membrane for discharging excise duty liability - Whether the appellant has paid the excise duty on the membrane cleared by them and amounts so paid is more than the credit taken by the appellant in respect of CVD and SAD paid on imported membrane - Held that:- In their reply to the show-cause notice, the appellant had specifically mentioned that the excise duty liability discharged by them on the membranes cleared is more than the credit taken of CVD and SAD. However, the adjudicating authority has not given any finding in respect of this contention made by the appellant. Therefore, even in a case where the activity did not amount to manufacture, the appellant was not required to reverse any credit. However, the adjudicating authority has not considered this aspect; therefore, the matter has to go back to the adjudicating authority to verify whether the excise duty liability discharged by the appellant on the process of manufacture undertaken is more than the credit taken in respect of the CVD and SAD on such membranes. If it is found that the appellant has paid more excise duty, then the question of reversal of credit would not arise in the light of the various decisions in the case of Creative Enterprises [2008 (7) TMI 311 - GUJARAT HIGH COURT], Ajinkya Enterprises [2012 (7) TMI 141 - BOMBAY HIGH COURT] and Narmada Chematur Pharmaceuticals Ltd. (2004 (12) TMI 93 - SUPREME COURT OF INDIA). - Matter remanded back - Decided in favour of assessee.
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