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2016 (12) TMI 152 - AT - Central ExciseCENVAT credit - Whether the main appellant M/s Hikal Ltd. is eligible to avail the CENVAT credit of CVD paid on the goods “Isoproturon Tech” or otherwise? - Held that: - It is the case of the Revenue that the “goods” which are imported not inputs as it is not consumed for manufacture any final product. I find that both the lower authorities have erred in coming to such conclusion in as much, it is undisputed that main appellant had discharged duty on the final product, and in my view were eligible to avail the CENVAT credit of C.V.D. and Central Excise duty paid on the said “goods”. This law is now settled by the Hon'ble High Court of Bombay in the case of Commissioner of Central Excise, Pune-III Vs. Ajinkya Enterprises [2012 (7) TMI 141 - BOMBAY HIGH COURT], where it was held that It is only on 24th June 2010, the Board has issued a Circular to the effect that the process of pickling does not amount to manufacture. Therefore, during the relevant period, that is, during the period from 2nd March 2005 to 31st December 2005, it could not be said that the issue was settled and that the assessee paid duty on decoiled HR/CR coils knowing fully well that the same were not manufactured goods. If duty on decoiled HR/CR coils was paid bona fide, then availing credit of duty paid on HR/CR coils cannot be faulted. CENVAT credit allowed - appeal allowed - decided in favor of assessee.
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