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2016 (6) TMI 470 - AT - Central ExciseCenvat Crediti - processing on the barrels to convert into final product, by fixing of injection moulded caps, inners, etc was not amount to manufacture - reversal of credit - Held that:- The appeals can be disposed of on legal grounds that credit having been utilized by the appellant for payment of duty for their final product and thus not require any further reversal. It has been the subject matter of various decisions that once the duty of Excise is paid by utilizing the credit availed by an assessee, the same would amount to reversal of credit and there can be no requirement of any further reversal. Reference in this regard can be made to a latest decision of the Tribunal in the case of Asian Colour Coated Ispat Ltd. Vs. Commissioner of C. Excise., Delhi-III [2014 (9) TMI 974 - CESTAT NEW DELHI] where there was difference of opinion between two original Members of the Bench and the issue was resolved by a third Member. After discussing the entire case laws, it was held that the credit availed on the inputs which were allegedly used for payment of duty on the final product, which cannot be held to be a manufactured product, would not call for further reversal. Inasmuch as we hold in favour of the assessee on the main issue, and the issue of reversal of credit on account of non-receipt of inputs sent to the job worker within a period of 180 days is a procedural lapse and inasmuch as the credit has been reversed along with interest even before the issue of show-cause notice, we find no justifiable reason to impose penalty on the appellant and also on the Managing Director. The penalty is accordingly set aside
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