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2017 (6) TMI 527 - AT - Central ExciseCENVAT Credit - N/N. 3/2001-CE, dt.01.03.2001, and 06/2002-CE, dt.01.03.2002 - denial of credit on the ground that Lidoncaine USP/HCL is Anaesthetics and exempted from duty under said notification - Held that: - from the very beginning, the Appellants have been claiming that the product is non-Anaesthetics and in support, they have placed end-use certificate from their customer. Also, I find from the records that the Appellant tried to make out a point before the Adjudicating Authority in support of their case that necessary sample of the product was required to be drawn for testing so as to ascertain the use of their product as Anaesthetics or otherwise, which was not considered. In these circumstances, the Appellant discharged duty and cleared their product for home consumption after availing CENVAT Credit on the inputs that were used in the manufacture of such product which would have been otherwise cleared by them as exempted, if the test result would have shown the product as Anaesthetics. The issue is covered by the judgment of the Tribunal in the case of CCE Pune-III Vs Ajinkya Enterprises [2012 (7) TMI 141 - BOMBAY HIGH COURT], where it was held that once the duty on the final product has been accepted by the Department, the CENVAT Credit availed need not be reversed even if the activity does not amount to manufacture subsequently. Appeal allowed - decided in favor of appellant.
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