2016 (4) TMI 775 - AT - Central Excise

Demand - Availed Cenvat credit on bought out plastic bottles - Department rejected the credit that no manufacturing activity has been carried out and are resold as such - Held that:- the transaction of purchase of goods, availment of Cenvat credit thereon and payment of duty on the said goods on its removal is squarely coverd under the provisions of Rule 16 of the Central Excise Rules, 2002. More over in the appellant's own case, for a different unit, on the identical issue this Tribunal had upheld the order of the Commissioner (Appeals) wherein the Ld. Commissioner (Appeals) had dropped the demand. Considering the above decision, the appellant has correctly availed the Cenvat Credit on the bought out plastic bottles. Therefore, the demand is set aside. - Decided in favour of appellant