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2016 (3) TMI 801 - AT - Central ExciseCenvat Credit allowability on the inputs used in the manufacture of exempted goods or non dutiable goods - Held that:- We find that the facts of the case is not much in dispute inasmuch as the respondent have availed the credit on inputs which was used in the process of printing and lamination processes of the Polyester/BOPP Film and this activity was held to be non manufacture. Cenvat Credit on the inputs cannot be denied as per the provisions of Rule 16 of the Central Excise Rules, 2002 as from the plain reading of the above Rule it can be seen that under this provision Cenvat Credit is allowed on the duty paid material treating it as inputs for the purpose of various processes and after processing if the activity is not amount to manufacture the assessee is required to clear such processed goods on payment of duty which is equal to Cenvat Credit and if the activity is amount to manufacture then excise duty is required to be paid on transaction value. As per this clear provision, even if, activity does not amount to manufacture the credit is permissible. As per the above discussion, we are of the considered view that Cenvat Credit on the inputs used in the process which does not amount to manufacture, is admissible. - Decided in favour of assessee
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