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2016 (2) TMI 591 - AT - Central ExciseCenvat Credit on semi finished / unformed batteries denied - Whether the activity undertaken by the appellant on amounts to manufacture or not? - Held that:- Semi finished / incomplete batteries received by the appellant and by the process undertaken by the appellant have become complete batteries / marketable. Therefore, the activity undertaken by the appellant is squarely covered by the section note 6 of Section 16 of Tariff Act 1985. Therefore, we hold that activity undertaken by the appellant amounts to manufacture. Therefore, they have rightly taken the Cenvat Credit on semi finished / incomplete batteries received from their sister unit to do the process making them marketable in complete condition. The appellant has succeeded on the issue that whether their activity amounts to manufacture or not. We also hold that as per the decision of Hon'ble High Court in the case of Ajinkya Enterprises (2012 (7) TMI 141 - BOMBAY HIGH COURT ) wherein it has been held that if activity does not amount to manufacture, the goods cleared on payment of duty shall amount to reversal of credit. In that situation also appellant is not required to reverse Cenvat Credit. In these circumstances, the appellant has correctly taken the Cenvat Credit and we do not find any merit in the impugned order. - Decided in favour of assessee
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