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2016 (8) TMI 295 - AT - Central ExciseCenvat Credit - payment of duty where processing is not amounting to manufacture - they had cleared the fabrics cut to required sizes - payment of duty which was not less than cenvat credit taken on the fabrics - whether amount to reversal of credit or not - Held that:- the case is squarely covered by various judgments of the Tribunal. The demand raised by the Revenue does not survive because the credit taken by the appellant was reversed by paying duty at the time of clearance of the goods. That the items were not input is also not of much consequence inasmuch as the appellant could have also dealt with these items as a trader and the cenvat provisions would allow the same treatment. Further since the equal amount of credit has been paid at the time of removal of these goods, the requirement of law of reversing credit at the time of clearance of inputs as such remain satisfied. therefore, the demand and penalties are set aside. - Decided in favour of appellant with consequential relief.
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