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2017 (11) TMI 601 - AT - Central ExciseCENVAT credit - receipt of assembly frame - manufacture - denial on the ground that after receipt, appellant have carried out only painting process and such activity does not amount to manufacture in terms of Section 2(f) accordingly, appellant is not entitle for the Cenvat credit on the duty paid goods received by them - Held that: - the Cenvat credit in respect of duty paid goods is allowed when the said duty paid goods is brought into factory for the purpose of remaking, refine, reconditioning or for any other reason. In the present case admittedly duty paid goods brought by the appellant has undergone the painting process. As per the provision of Rule 16(2) assesse is supposed to discharge excise duty equivalent to Cenvat credit availed in case of process does not amount to manufacture and excise duty payable on the transaction value in case activity amounts to manufacture. As per this provision whether activity on the duty paid goods brought into factory is manufacture of otherwise, the duty paid goods to be treated as input and credit is allowed - demand set aside. Reliance also placed in the case of Commissioner of Central Excise & Customs, Aurangabad Versus M/s Fine Packaging Pvt Ltd [2016 (3) TMI 801 - CESTAT MUMBAI]. As regard the demand of ₹ 8,43,320/- appellant have admitted the same therefore demand of ₹ 8,43,320/- along with interest is upheld. Appeal allowed in part.
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