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2016 (1) TMI 879 - AT - Central ExciseUtilized ineligible credit for the payment of final product - whether or not the process undertaken by the appellant amounts to manufacture for central excise purpose - Held that:- The original authority has erred in not analyzing all the relevant facts involved in the present case. As such, we find that the assessee has followed the cenvat credit scheme as applicable to them in the manufacture of their final products. The demand is not sustainable on this ground. We also find much force in the appellant's contention regarding unsustainability of demand to recover the input credit as the said credit has been utilized by them for payment of duty on the final product. Even in case the process is not amounting to manufacture, as the input credit stands reversed during the course of payment of duty on final products, no further demand for such reversed credit is sustainable. - Decided in favour of assessee.
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